Terraform’s legal team sought to have the case transferred to arbitration.
The attorneys claimed that the clients had waived their rights to a trial and class action lawsuit.
The founder of Terraform Labs, Do Kwon, and the company itself might be the targets of a class action lawsuit in Singapore after the High Court’s rejection of a motion to dismiss the case, according to Business Times’ report.
Terraform’s legal team sought to have the case transferred to arbitration by pointing to the website’s use policies. The attorneys asserted that the clients had waived their rights to a trial and class action lawsuit participation. Disagreement was expressed by the court.
On behalf of 375 additional plaintiffs, Julian Moreno Beltran and Douglas Gan brought the case in September 2022, claiming a collective loss of $57 million.
Moreover, in their arguments, the claimants accuse Terraform Labs, Do Kwon, and co-founders of deceiving investors into buying and holding onto tokens of the algorithmic stablecoin terraUSD (UST) as it decoupled from the U.S dollar in May 2022 and fell below $0.10.
Pursuit Continues
Also, on a different note, Terra and Do Kwon’s legal team claimed that a whistleblower from Jump Crypto assisted the U.S SEC in constructing its case against them.
Moreover, the SEC has charged Terra and Do Kwon with securities and exchange rule violations, multi-billion dollar crypto fraud, and investor misrepresentation using the UST algorithmic stablecoin (now USTC). Furthermore, Terraform requested the dismissal of this lawsuit in October, arguing that the regulator had failed to provide sufficient evidence.
Do Kwon’s extradition to either South Korea or the US was accepted by the Montenegro High Court on November 24. However, which nation will be given precedence will be decided by Andrej Milović, the Minister of Justice of Montenegro.