A new $57 million class action lawsuit has been filed in Singapore by disgruntled investors against Terraform Labs founder Do Kwon, the Luna Foundation Guard (LFG), and Terra founder Nicholas Platias.

359 Terra investors filed a lawsuit against Kwon, Platias, and the LFG on September 23 in Singapore's high court, alleging that they made false statements about TerraUSD (UST), the ecosystem's so-called algorithmic stablecoin that was not "stable by design" and was unable to maintain its peg to the US dollar.

The claimants claim that the four parties connected to Terra "knew or ought to have known that the Claimants sought to buy and hold digital stablecoins that were not susceptible to the volatility of the wider market and produce a respectable passive return."

Based on the value of the UST tokens they bought, held, or sold during the May market fall, the claimants are seeking aggravated damages of over $57 million in addition to reimbursement for their lost cash.

According to the lawsuit, Do Kwon continued to instill optimism despite UST's failure by tweeting that "everything was under control" and urging people to relax.

When withdrawals spiked in May 2022, Terra UST failed and entered a death spiral, losing almost all of its market value in a matter of minutes. Many afterwards asserted that the stablecoin was a Ponzi scheme that would ultimately fail.

Do Kwon has maintained claims that she is not "running away," despite the fact that she became a contentious figure as a result of the destruction of the Terran ecosistem. And that he is actively collaborating with all of the government agencies that reach out to him.