Founder of Terraform Labs sought by investors seeking $57 million

Founder of Terraform Labs sought by investors seeking $57 million

Whereabouts of the co-founder and CEO of Terraform Labs may be unknown now, but this did not stop hundreds of investors who lost around $57 million to file a lawsuit against him for the stunning collapse of the algorithmic stablecoin TerraUSD.

The lawsuit was filed on Sept. 23 on behalf of the 359 investors who lost millions in the Terra crash. The official judiciaire website of Singapore revealed a follow-up hearing for the suit was scheduled for Wednesday.

The suit alleges that the CEO of TFL lured investors into buying the algorithmic stablecoin TerraUSD, with 'fraudulent misrepresentations'. It also alleged that Kwon was well aware of the stability of the stablecoin's'structural weakness', as reported in court documents published by the Wall Street Journal.

In a lawsuit filed by Spanish citizen Julian Moreno Beltran, a Spanish citizen, who allegedly lost $1.1 million worth of investment and a Singapore native Douglas Gan Yi Dong, a Singapore native, said the lawsuit was filed by a Spanish citizen named Julian Moreno Beltran. Several other claimants said they were entitled to claim for loss and damage suffered in purchasing the UST tokens, including aggravated damages.

Other plaintiffs in the lawsuit include Nicholas Platias, the head of research at Terraform Labs, and Luna Foundation Guard, the fund created to support the growth of the terra ecosystem. In a statement to WSJ, Terraform Labs said the lawsuits against Kwon and others in Singapore were rebutted.

The WSJ said that the agency's decision was based on information from inside the company's database.

Kwon is now being sought by South Korean prosecutors, while Interpol has issued a red notice seeking his arrest. The investor is currently being investigated by the SEC for potential violations of federal investor protection rules with the way it advertises its algorithmic stablecoin.

Despite the allegations, Kwon has denounced the project as a fraud. Kwon refused to disclose his location in his most recent interview.

He also said he was not on the run and was not hiding. Kwon said that he did not violate the Capital Markets Law of South Korea. In May, the algorithmic stablecoin UST collapsed and was eventually followed by the blockchain's native token LUNA.