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A lawsuit recently acquired by the Wall Street Journal reveals a demand by 350 investors to be repaid the $57 million they lost in the Terra LUNA collapse. The lawsuit initially filed in late September, also names both Do Kwon and his company as defendants.
The $57 Million Lawsuit Against Do Kwon and Terraform Labs Explained
The collapse of Terra LUNA earlier this year has been sending shockwave after shockwave ever since it happened. It has and is affecting both retail investors, and larger companies, many of which have been forced to go bankrupt, like the recently sold Voyager, and the soon-to-be-auctioned Celsius.
Recently, a lawsuit against Do Kwon filed in Singapore on September 23rd got published. The suit names Terraform Labs, Do Kwon, Nicholas Platias, and Luna Foundation Guard Ltd. The claims are made on behalf of a group of investors that suffered great losses in the collapse.
The Claimants are a group of individuals who purchased TerraUSD stablecoin tokens issued by the 1st Defendant (“UST”) and who, amongst other things, utilised fiat currency, including US dollars and digital currencies such as Tether (“USDT”) and USD Coin (“USDC”) to do so. The Claimants are represented by Mr Julian Moreno Beltran, a Spanish citizen ordinarily resident in Australia, (“Mr Beltran”) and Mr Douglas Gan, a Singaporean citizen (“Mr Gan”).
The defendants are demanding the restitution of nearly $57 million—the amount they lost when Terraform’s stablecoin lost its peg—as well as aggravated damages that are yet to be determined. In case the court rejects this demand, the plaintiffs are demanding the defendants pay damages based on the accusations of “fraudulent misrepresentation, misrepresentation, and negligent misstatement, in respect of the loss and damage.”
The Hunt for Do Kwon
While the aftermath of the Terra LUNA collapse has mostly taken the character of bankruptcy proceedings over the summer, the pressure was again directed directly at Do Kwon in September when South Korea Issued an arrest warrant for him. Not long after, the hunt went international when Interpol issued a red notice for Terraform Labs’ founder.
For his part, Do Kwon has been refuting allegations that he is in hiding, as well as numerous other accounts of him withdrawing assets. In a recent interview, he also called the warrant for him politically motivated and claimed he doesn’t know the exact charges against him.
More recently, it was reported that 4,400 retail investors who suffered major, or even catastrophic losses in the collapse are actively searching for him. Some of them believe Do Kwon is in Dubai, and are looking for him in the United Arab Emirates.