Terraform’s Attempt to Escape Do Kwon’s Class-action Lawsuit Fails Report

Class-action Lawsuit Against Terraform and Do Kwon Dismissal Attempt Fails, According to Report

Terraform Labs: A Rocky Journey to TerraUST

Defunct blockchain protocol Terraform Labs is currently stuck in a legal maze that seems to have more twists and turns than a rollercoaster ride. This mind-boggling adventure has left investors scratching their heads and wondering if they’ve stumbled into a virtual reality game gone wrong. Buckle up, fellow digital asset enthusiasts, because this story is about to get wild!

According to a local news outlet, the creators of the algorithmic stablecoin TerraUST and its fearless leader, Do Kwon, have been dealt with a severe blow. Their desperate attempt to overturn a class-action lawsuit has been rejected by the High Court of Singapore. It’s as if they tried to use a foam sword against a fire-breathing dragon – not the smartest move, my friends.

The court ruled that the defendants failed to establish a valid arbitration agreement between them and the claimants because, apparently, the Terra website contained an “arbitration clause.” Now, I’m no legal expert, but it seems like the claimants might have unwittingly given up their right to a trial by jury or participation in a representative action just by transacting on the website. It’s like signing a contract without reading the fine print – oops!

But hold on tight, because this isn’t the first hurdle Terraform Labs has stumbled over. Back in the day, when their blockchain network collapsed like a stack of cards, they tried their luck with a motion for a stay in favor of arbitration. However, the Assistant Registrar was having none of it. They were denied because the terms of use were cleverly tucked away in a concealed part of Terraform’s website. Tricky, tricky! If only they had flagged those terms like an overzealous referee waving a yellow card.

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Undeterred, Terraform’s legal representative decided to throw caution to the wind and filed an appeal and a counterclaim seeking substantive remedies. But alas, they were met with yet another rejection. The court basically said, “Hey, your actions speak louder than words, and they’re screaming, ‘We accept the decisions of the legal system!’” Talk about a double whammy!

Now, this legal circus isn’t just about fancy legal jargon and secret arbitration clauses. Oh no, my friends, it gets juicier. In September 2022, a lawsuit was filed against Terraform Labs and its founder, Do Kwon, accusing them of fraudulent misrepresentation and leaving investors in the deep, dark abyss of financial loss. The total sum of these collective losses? A jaw-dropping $57 million! Ouch!

The claimants alleged that Terraform, Do Kwon, and their trusty sidekicks induced them to hold onto TerraUST, even though it failed to maintain its 1:1 peg to the US dollar. It’s like being told your rollercoaster will loop-the-loop, but instead, it just falls flat on its face. Talk about a ride nobody wants to be on!

The rollercoaster of TerraUST’s value took a nosedive after the Anchor Protocol fiasco, where promises of fixed returns vanished into thin air. Investors rushed to withdraw their UST, turning the stablecoin into a laughingstock with a record-breaking low of $0.05. Terraform’s attempted rescue mission ended up feeling more like a failed magic trick. Poof, and the money’s gone!

The aftermath of this whole debacle unleashed a crypto winter, causing waves of financial challenges throughout the industry. It was a domino effect, hitting crypto hedge funds and investors like a relentless storm. Trillions of dollars vanished in the blink of an eye, leaving many wondering if they had accidentally wandered into a crypto horror movie.

As if all of this weren’t enough, the cherry on top is the legal action brought forth by the US Securities and Exchange Commission (SEC). They’ve accused Terraform and its founder of selling unregistered securities and defrauding American investors out of billions of dollars. It’s like watching a courtroom drama unfold with twists and turns that would put Agatha Christie to shame.

In a desperate attempt to wiggle out of the SEC’s grasp, Terraform’s legal team filed a motion for summary dismissal, hoping to make the entire case disappear like magic. But will they be able to pull off this grand illusion or will the SEC turn up the heat like a flamethrower in court? Only time will tell in this nail-biting saga.

So, dear readers, buckle up and join us on this rollercoaster ride through the legal wilderness of Terraform Labs. Will they find their way out, or will they be lost forever in the tangled maze of lawsuits? Stay tuned for the next thrilling chapter in the TerraUST chronicles!

Now, it’s your turn, dear readers! What’s your take on Terraform Labs’ tumultuous journey? Have you ever been entangled in a legal battle that made your head spin? Share your thoughts in the comments below, and let’s commiserate together in this wild and wacky crypto universe!

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