TechFlow news, latest developments in the representative lawsuit filed against Terraform Labs and its co-founders. On November 30, the Singapore High Court dismissed the defendants' appeal, allowing the lawsuit to proceed.
This is one of a series of lawsuits arising from the collapse of the TerraUSD (UST) token in May last year. Terraform is a Singapore-based company that developed and operated the Terra blockchain and was responsible for issuing and promoting the UST cryptocurrency.
The lawsuit was filed in September 2022 by Spanish citizen Julian Moreno Beltran and Singaporean Douglas Gan on behalf of 375 individuals, alleging fraudulent misstatements by Terraform and related parties that caused investors to lose nearly $57 million.
Terraform had attempted to dismiss the lawsuit based on an arbitration clause in its website's terms of use, but the court ruled that the company had accepted the jurisdiction of Singapore courts. In its judgment, the court noted that Terraform's conduct during the proceedings indicated its acceptance of the Singapore court’s jurisdiction, thereby forfeiting its right to refer the matter to arbitration.
The court also observed that although the lawsuit was initiated in September 2022, the jurisdictional dispute was only resolved in June this year, calling the over-nine-month delay regrettable.
Finally, the judge stated that while some leniency may be granted for delays in judicial proceedings, parties should expect strict sanctions from the court if such conduct is found to be intentional or dishonest.
