Terra founder Do Kwon is facing a $57 million lawsuit in Signapur.
Kwon and his team allegedly deceived investors by providing false information about stablecoin UST.
Do Kwon On Target Again
Terraform Labs co-founder Do Kwon became the target of a lawsuit along with another co-founder, Nicholas Platias.
In the lawsuit filed in Singapore’s high court on September 23, 359 people charged Kwon, Platias and LFG. Plaintiffs testified that they had been lied to that the UST was “stable by design”.
As it will be remembered, the UST, which is indexed to the US dollar, lost its constant and the collapse of the Terra ecosystem had begun.
Plaintiffs sought damages for “loss and damage” of $57 million in exchange for the value of the tokens they held.
According to the plaintiffs, Terra officials knew that the plaintiffs wanted to generate passive income without any problems due to volatility.
The court document alleged that Kwon was aware of the “structural weakness of algorithmic stablecoins” due to his role in the downfall of Basis Cash.
“The defendants have recklessly made the statements in question knowingly or unconcernedly that they are false and untrue”
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