The co-founder of Terraform Labs, Do Kwon keeps finding himself facing hotter waters ever since the network crash took place.
Initially, Do Kwon was wanted in South Korea as the court there wanted to question him over his involvement in the Terra Network crash.
Later on, the United States regulators also went after him for the same reason, and now, it is Singapore that wants to catch him.
Do Kwon Faces a Lawsuit in Singapore
The latest developments suggest that Do Kwon is now the target of the Singapore prosecutors where he faces a major lawsuit.
He is not the only person that is facing the lawsuit other entities are also part of it.
The reports confirm that Nicholas Platias, the co-founder of Terra and the Luna Foundation Guard (LFG) are also facing the lawsuit.
The lawsuit was filed on September 23
The lawsuit was filed by 359 individuals from Singapore at the Singapore high court. The filing was done back on September 23 and it was against the LFG, Platias, and Kwon.
A lawsuit has been filed against these parties claiming that they had made false claims. They claimed that the Terra network was resilient and its design made sure that it would never lose its dollar peg.
However, the individuals claimed that the TerraUSD (UST), which is now TerraUSD Classic, was not stable at all. It was not able to maintain its dollar peg and caused huge losses to its investments.
$57 Million Claimed against the Prosecuted
The local reporting firms have confirmed that in the lawsuit, the plaintiffs have demanded a huge compensation worth $57 million. They have demanded in the light of the “loss and damage” claims
They have added that the money they demand is for the funds they had purchased and had to sell due to the downturn of the crypto market.
In addition to the $57 million amount, the plaintiffs have also requested to be paid for the aggravated damages.
The claimants have made a statement that they invested in TerraUSD because they were guaranteed there would be no losses with the stablecoin.
It was claimed that the UST would not lose its dollar peg and therefore, its value would always remain intact. As the UST lost its value, it became obvious that the teams backing it up made false promises.
With Singapore also filing a lawsuit against Do Kwon, the land is becoming tighter for Do Kwon, who has been avoiding getting caught by law enforcement authorities.
If Do Kwon is caught in Singapore, he may get extradited to South Korea after facing charges in Singapore.