Terraform Labs co-founder Do Kwon is facing a multi-million dollar lawsuit in Singapore over his alleged role in the crash of its stablecoin.
A lawsuit has been filed by Douglas Gan and Julian Moreno Beltran in the Singapore High Court in September against Kwon Do-hyeong and three other defendants on the basis of fraudulent misrepresentation, according to a report by «The Straits Times» citing court documents.
The three other defendants are Terraform Labs, Greek co-founder Nikolaos Alexandros Platias and Luna Foundation Guard (LFG). Terraform Labs and LFG are registered in Singapore.
Misleading Information
Alongside 359 other claimants, Gan and Beltran – a Singaporean and Spanish national, respectively – said they had been given misleading information about the TerraUSD stablecoin having a stable price which led to heavy losses. They are seeking a sum of $56.9 million from the lawsuit, which they claim is the difference between the value of their assets before and after the crash.
Kwon was previously based in Singapore but is currently believed to be in Europe, according to the Korean Broadcasting System. Interpol has issued a red notice to locate and arrest the fallen crypto entrepreneur.
