PiCK
Singapore Court Orders Terraform, Do Kwon to Pay More Than $3 Million Over UST Collapse
Summary
- The Singapore International Commercial Court ordered Terraform Labs and co-founder Do Kwon to pay damages to 40 plaintiffs in a fraud case tied to the UST collapse.
- The plaintiffs will receive more than $3 million in total, concluding the second compensation phase in a lawsuit brought by 275 investors who said they suffered losses from the UST collapse.
- The court calculated damages based on the amount of UST held by the plaintiffs and when they held it, and the ruling also found fraudulent conduct by the defendants.
Forecast Trend Report by Period
A Singapore court ordered Terraform Labs and co-founder Do Kwon to compensate investors in a fraud suit tied to the collapse of TerraUSD, or UST.
Bloomberg Law reported on June 29 that the Singapore International Commercial Court ordered Terraform Labs and Kwon to pay damages to 40 plaintiffs in the fraud case stemming from the 2022 UST collapse.
The 40 plaintiffs will receive more than $3 million in total. The ruling concludes the second compensation phase in a lawsuit brought by 275 investors who alleged losses from the UST collapse.
The court calculated damages based in part on how much UST the plaintiffs held and when they held it. Bloomberg Law said the ruling also found fraudulent conduct by the defendants.
UST, the Terra ecosystem's stablecoin, lost its dollar peg in May 2022 and plunged along with Luna. Since then, civil and criminal proceedings against Terraform Labs and Kwon have continued in multiple countries.
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.