Cryptocurrency developer Luna is being sued for $ 57 million

Terraform Labs founder Do Kwon and Luna Foundation Guard member Nicholas Platias are facing a new class action lawsuit, as defrauded investors from Singapore are demanding $ 57 million from the fraudsters.

According to the Wall Street Journal, 359 investors accuse Kwon and Platias of deliberately deceiving investors, as their algorithmic stablecoin TerraUSD (UST) proved to be unstable and caused hundreds of thousands of losses. However, in order to return funds to investors and punish Do Kwon and his partners, the founder of Terraform Labs must first be found. Interpol and 4,400 former Terraform Labs investors are currently working on this.

It should be noted that investors have joined the search not only for Do Kwon but also for other Terraform Labs executives, with the goal of bringing all those involved to justice. Only at the end of October did we find out that the Terra founder, who is wanted in 195 countries, moved from Singapore to Dubai last month. Previously, Do Kwon’s whereabouts were not known for certain.

In order to more effectively track down Do Kwon and other cryptocurrency criminals, the world’s largest criminal police organization, Interpol, has set up a special unit in Singapore. According to Interpol Secretary General Jürgen Stock, law enforcement agencies often lack the proper training and equipment to track crypto crimes, so there is a great need for a special unit.

As a reminder, the Terra ecosystem, co-founded by Kwon, collapsed after its algorithmic stablecoin TerraUSD (UST) lost its peg to the US dollar in May. This led to billions of dollars in losses for investors in the cryptocurrency market. The founder and CEO of TerraformLabs is accused of violating South Korean legislation on financial markets.