Terra Founder Do Kwon Faces New $57 Million Lawsuit – Where is He?
Do Kwon. Source: a video screenshot, Terra / YouTube Terraform Labs founder Do Kwon, along with the Luna Foundation Guard (LFG) and Terra founding member Nicholas Platias, are facing a fresh $57 million class action suit from aggrieved investors in Singapore. The lawsuit is filed by 359 Terra investors in Singapore’s high court on September 23 and claims that Kwon, Platias, and the LFG made fraudulent claims regarding the ecosystem's so-called algorithmic stablecoin, TerraUSD (UST), which was not “stable by design” and unable to maintain its U.S. dollar peg. Investors “believed that [TerraUSD] would be a token that was stable by design [and] whose price would always be pegged to the US Dollar,” according to a report by the Wall Street Journal. Additionally, investors assumed that the stablecoin would offer “attractive APY returns” when staked in Anchor Protocol, Terraform Labs’ lending and borrowing ser...