YEREVAN (CoinChapter.com) — Do Kwon Singapore class action lawsuit is still on the table. The High Court of Singapore dismissed an attempt by Terraform Labs and Do Kwon to have a class-action lawsuit thrown out. This lawsuit, filed in September 2022 by Julian Moreno Beltran and Douglas Gan on behalf of 375 claimants, alleges fraudulent misrepresentation by Terraform Labs and its co-founders in promoting the algorithmic stablecoin terraUSD (UST). The claimants contend they collectively lost $57 million due to these actions.
Do Kwon’s Singapore Class-Action Lawsuit Advances
Mahesh Rai, a director of Drew & Napier, representing the claimants, commented that to his knowledge, “this is the furthest a class-action suit has progressed in the world.”
“Now we are approaching the discovery stage.”
added the lawyer.
This decision, announced on Dec. 1, 2023, counters Terraform Labs’ effort to shift the lawsuit to an arbitration process, which they justified by citing the website’s terms of use.
Montenegro Extradition Approval
The legal challenges for Do Kwon extend beyond the Do Kwon Singapore lawsuit. In a Nov. 24 ruling, a Montenegro court approved the extradition of the crypto entrepreneur, who has been detained for several months.
Per Reuters, both South Korea and the United States are seeking Kwon’s extradition on fraud charges, with the decision on his destination now resting in the hands of Montenegro’s justice minister. This development marks a critical step in the international pursuit of Kwon following the Terra implosion.
The Terra Collapse and Do Kwon Singapore Aftermath
Following this financial disaster, Do Kwon faced scrutiny from regulatory bodies and the cryptocurrency community. He proposed and initiated measures to revive the Terra ecosystem in response to the crisis. Those actions included creating a new version of the LUNA token.
However, these efforts have been overshadowed by his current legal challenges. Those include the Do Kwon Singapore lawsuit, casting a shadow over the future of Terraform Labs and its projects.
Do Kwon’s legal woes serve as a cautionary tale about the risks inherent in innovative financial technologies, particularly in areas like algorithmic stablecoins, which remain largely unregulated and subject to market uncertainties?
As the legal proceedings continue to unfold, the cryptocurrency community and investors worldwide are watching closely, seeking lessons from the Terra saga and its implications for the future of digital finance.
