Cryptocurrency developer Do Kwon, TerraUSD (UST) Many investors who lost money in their stablecoin are facing a lawsuit that has not been brought up before.
Singaporean Plaintiffs Demand $57 Million From Do Kwon
More than 350 investors in Singapore claim to have lost $57 million in the collapse of TerraUSD.
The lawsuit was filed on September 23 but has drawn little attention so far. Kwon allegedly made “fraudulent misrepresentations” about the stability of TerraUSD, an algorithmic stablecoin to maintain a one-to-one peg with the US dollar.
A spokesperson for Mr. Kwon’s Singapore-based company, Terraform Labs, who is also a defendant in the case, said in a statement that the company did not commit any crimes and will defend itself vigorously:
“There is an important difference between a public market event and a scam. The risks were publicly known and discussed, and the underlying code was open source.”
Kwon has previously denied being scammed and said that he is a true believer in TerraUSD, which lost money in the crash.
The lead plaintiffs in the case are Julian Moreno Beltran, a Spanish national, and Douglas Gan Yi Dong of Singapore. The list of other plaintiffs states that many of them invested tens or hundreds of thousands of dollars in TerraUSD when it collapsed. According to the listing, Beltran had around $1.1 million worth of stablecoins.
In addition to getting their money back, plaintiffs are also seeking unspecified “aggravated damages.” Plaintiffs are represented by one of Singapore’s top law firms, Drew & Napier.
*Not investment advice.
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