Terraform and Do Kwon’s Attempt to Dismiss Class-action Lawsuit Fails: Report
Defunct blockchain protocol Terraform Labs is currently fighting legal challenges in Singapore and appears to be facing setbacks.
According to a local news outlet, the creators of the algorithmic stablecoin TerraUST and its founder, Do Kwon, have had their efforts to overturn a class-action (representative action) lawsuit rejected by the High Court.
The High Court of Singapore ruled that the defendants failed to establish a valid arbitration agreement between them and the claimants after stating that the Terra website contained an arbitration clause.
The arbitration clause implies that the claimants waived their rights to a trial by jury or participation in a representative action as soon as they continued transacting on the website.
However, this has not been its first denial in its ongoing legal fight after the collapse of the blockchain network. Earlier this year, the Assistant Registrar (AR) denied their motion for a stay in favor of arbitration.
According to the AR, the debated terms of use were located at a concealed part of Terraforms’ website, and the defendants failed to highlight them properly to the claimants.
Consequently, its attempt to shift the representative action lawsuit to “confidential arbitration proceedings” was also denied.
In response, Terraform’s legal representative filed an appeal and a counterclaim, seeking substantive remedies without challenging jurisdiction.
However, this move was also rejected by the court, asserting that the defendants’ actions indicated an acceptance of the decisions of the legal system.
In September 2022, a case was filed by Julian Moreno Beltran, a Spaniard, and Douglas Gan, a Singaporean, on behalf of 375 others. The lawsuit aims to bring the blockchain protocol and its
