Singapore Court Orders $3M Payout to Terraform Collapse Victims

The judgment from the Singapore International Commercial Court concludes the second tranche of a representative fraud action involving 275 investors. This decision follows a March 2026 directive from the Singapore Court of Appeal, which mandated a revised valuation method for UST holdings, setting a cut-off value of approximately $0.60485 per token. By adopting this calculation, the court provided higher compensation to claimants who relied on public assertions that the coin would maintain its one-dollar peg.

Evidence presented to the court highlighted that Terraform and Kwon disseminated false information through white papers and corporate communications. The SICC determined that these claims were made with reckless disregard for accuracy, inducing investors to hold assets until the project’s total disintegration in May 2022. While this award addresses specific losses, Terraform remains embroiled in broader Chapter 11 bankruptcy proceedings in the United States and ongoing litigation elsewhere. Do Kwon, currently serving a 15-year prison sentence in the U.S. for fraud, continues to face additional criminal scrutiny in South Korea as regulators globally intensify their focus on disclosure standards for decentralized finance products.