Terra Scandal Kwon Do-hyung Sued in Singapore for '80 Billion Won Cryptocurrency Fraud'

[Photo by Yonhap News]

[Asia Economy Reporter Park Byung-hee] Kwon Do-hyung, CEO of Terraform Labs and a key figure in the collapse of the virtual assets TerraUSD and Luna, has been sued in Singapore for a cryptocurrency fraud amounting to 80 billion won, the Wall Street Journal (WSJ) reported on the 29th (local time).

Over 350 Terra investors filed a lawsuit in a Singapore court on the 23rd of last month, demanding compensation for losses of $57 million (about 81.2 billion won) due to the cryptocurrency crash caused by CEO Kwon's alleged fraud.

In this class-action lawsuit, with two investors from Singapore and Spain as the main claimants, the plaintiffs pointed out that regarding the stability of the stablecoin TerraUSD, "CEO Kwon made false statements involving fraud."

In response, Terraform Labs, also sued alongside CEO Kwon, stated through a spokesperson at its Singapore headquarters that the company has committed no wrongdoing and will vigorously defend itself in court.

CEO Kwon is currently under investigation by prosecutors in South Korea and is facing multiple class-action lawsuits in the United States. South Korean investigative authorities have confirmed that CEO Kwon left Singapore last month and are focusing on the possibility that he traveled to a third country via Dubai, United Arab Emirates (UAE), requesting neighboring countries to help locate his whereabouts.

This content was produced with the assistance of AI translation services.