Terra’s Do Kwon hit with $57M fraud lawsuit in Singapore

Key Takeaways:

  • 23,359 individuals allege Kwon, Platias, LFG and Terra defrauded them.
  • Do Kwon escaped Singapore through Dubai —Report.
Terra investor invades Do Kwon’s house after LUNA's
Terra’s Do Kwon hit with $57M fraud lawsuit in Singapore.

LAGOS (CoinChapter.com) — Terra co-founder Do Kwon’s woes continue to increase as a new report has revealed that the embattled developer is facing another $57 million lawsuit in Singapore.

Do Kwon who is currently on the run and his whereabouts unknown to security agencies was reportedly sued on behalf of several investors who lost nearly $57 million in the collapse of his cryptocurrency project TerraUSD (UST).

Notably, in the lawsuit filed in a Singapore high court around 23,359 individuals allege that Do Kwon purposely defrauded them. They argued that Terra’s co-founder sold stablecoin UST— now TerraUSD Classic (USTC) — which was unstable and couldn’t maintain its peg to the US dollar.

The claimants in the suit are seeking compensation for around $57 million worth of loss and damage. The amount is incorporated based on the value of UST they purchased/ held before the token collapse in May. The aggrieved also request an order from the court for the Terra co-founder and other parties to pay for “aggravated damages.”

Additionally, the lawsuit also joined Luna Foundation Guard and Terra founding member Nicholas Platias as defendants. The plaintiffs noted that the accused intentionally made a fraudulent claim to sell their token. They explained that the four defendants were aware that they sold stablecoin that was actually subject to volatility.

“The defendants made the said representations fraudulently either well knowing that they were false and untrue, or recklessly not caring whether they were true or false.”

The lawsuit noted.

Do Kwon Left Singapore Through Dubai

Presently, Do Kwon is wanted by South Korean prosecutors and he’s been hit with class-action lawsuits in US courts. Furthermore, Interpol has also issued a red notice seeking his arrest. Although it is worth noting that the Terra co-founder continues to claim that he isn’t in hiding. He further noted that the current situation is politically motivated, hence his decision to remain in hiding.

Most recently South Korean prosecutors said Do Kwon left Singapore last month and landed in Dubai, United Arab Emirates. Recall that earlier Singapore authorities reported that Do Kwon was no longer in its city-state. However, the Terra co-founder according to a Bloomberg report used Dubai as a stopover to flee Singapore.

Meanwhile, no records have been found of Kwon’s UAE entry at the airport. As a result, local prosecutors and police have requested countries adjacent to Dubai help track Kwon’s whereabouts.

Hunt For Terra Cofounder Increases

In a related development, the hunt for Do Kwon has increased as investors hurt by the collapse of UST and other entities have joined the search for the embattled developer.

Moreover, members of a Discord group called UST Restitution Group have been attempting to track down the whereabouts of the fugitive. The group focuses their search on the internet looking for clues in an attempt to track down Kwon. The group originated as a result of the slow pace and the lack of results from law enforcement agencies.

Notably, members of URG have suggested that Kwon could be residing in places such as Russia, Dubai, Azerbaijan or even on a yacht. According to a report, members of the group are spread across Europe and Asia and are actively searching for Kwon.

“Dubai is friendly to crypto, very international (he would not stand out), and has limited extradition treaties in place. It would seem like the best fit for the 3-5 hour timezone shift apparent in the data.”

A member of URG started.
Do Kwon, Terra’s Do Kwon hit with $57M fraud lawsuit in Singapore

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