Attempts from Terraform Labs and its founder Do Kwon to avoid a class-action lawsuit have been dashed after the Singapore High Court rejected their attempts to dismiss the case this week.
As reported by the Business Times, the lawsuit was filed in September 2022, by Julian Moreno Beltran and Douglas Ganon on behalf of 375 other investors.
It claimed Terraform, Luna Foundation Guard, and its co-founders Do Kwon and Nikolaos Alexandros Platias, fraudulently misrepresented its enterprise causing losses of $57 million.
However, Do Kwon’s appeals against the lawsuit have been rejected by the Singaporean High Court on Thursday, opening up the doors for a lawsuit.
Do Kwon initially claimed that the lawsuit should be settled out of court using arbitration and referred to a clause within its website that waivered user rights to a trial or lawsuit.
However, this was rejected by the Assistant Registrar. It claimed the terms of the clause were placed in inconspicuous parts of the website with little effort to highlight them.
Another appeal was submitted by Do Kwon against this decision but in doing so, implied to the courts that Terraform accepts the Singapore court’s jurisdiction and thus cannot move to arbitration.
Do Kwon currently resides in a cell in Montenegro as he awaits extradition to either the US or South Korea.