A hearing on a lawsuit filed against Terraform Labs Pte. Ltd. chairman Do Kwon on behalf of 359 foreign investors who lost around $57 million in the Terra-LUNA collapse is slated for Wednesday in Singapore.
According to court documents obtained by the Wall Street Journal, the lawsuit, filed in Singapore’s high court on September 23, claims that Do Kwon induced investors to purchase then-called TerraUSD through fraudulent misrepresentations and that Do Kwon was aware of the algorithmic stablecoin’s structural weakness.
A follow-up hearing for the case is planned on Wednesday, November 2, according to Singapore’s official Judiciary website.
Julian Moreno Beltran and Singaporean Douglas Gan Yi Dong are leading the legal action. Beltran, a Spanish national, has around $1.1 million in TerraUSD. Terraform Labs and former Head of Research Nicholas Platias are also named as defendants in action, as is the Luna Foundation Guard (LFG), a Terra ecosystem fund.
The Terraform Labs CEO’s present whereabouts are unclear, but South Korean authorities verified that he departed Singapore last month and went to an undisclosed nation through Dubai.
South Korean officials are also pursuing Do Kwon and Terra colleagues on a variety of allegations, including fraud and breach of local capital markets legislation. Interpol has issued a red notice, as requested by the government, requesting that global law enforcement seek and temporarily detain Terra’s associates.
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