[2025] SGHC(I) 17 — JULIAN MORENO BELTRAN & 9 Ors v TERRAFORM LABS PTE. LTD. & 2 Ors

Catchwords

Damages — Measure of damages — Tort — Reliance measure of damages for tort of fraud and deceit Contract — Offer — Indefinite number of people — Unilateral contractual offer addressed to world at large Contract — Contractual terms — Warranties — Whether clause disclaiming warranties was validly incorporated into contractual bargain Tort — Misrepresentation — Inducement — Whether representation was a cause materially inducing representee into transacting in reliance Damages — Mitigation — Tort — Application of rule that representee must reasonably mitigate damage flowing from fraudulent misrepresentation Tort — Misrepresentation — Fraud and deceit — Whether representation properly construed constitutes actionable false representation of present fact

Practice Areas

Damages Contract Tort

Judges (1)

Anselmo Reyes Delivered

Counsel (15)

Drew & Napier LLC Firm Oon & Bazul LLP Firm WongPartnership LLP Firm Ee Yong Chun Bernard Counsel Defendant Han Guangyuan Keith Counsel Defendant Loh Renn Lee Daniel Counsel Applicant Mahesh Rai s/o Vedprakash Rai Counsel Applicant Paul Loy Chi Syann Counsel Defendant Samuel Navindran Counsel Defendant Samuel Soo Kuok Heng Counsel Applicant Tammie Khor Counsel Applicant Tan Chee Meng Counsel Defendant Teo Jin Yun Germaine Counsel Defendant Yii Li-Huei Adelle Counsel Defendant Yong Wei Jun Jonathan Counsel Applicant

Parties (13)

Luna Foundation Guard Ltd Defendant Terraform Labs Pte Ltd Defendant Andrew Joseph Che-Bin Lee Applicant Arun Kumar Sivaramavimalamoorthiy Applicant Daniel Davis Applicant Douglas Gan Yi Dong Applicant Julian Moreno Beltran Applicant Kwon Do Hyeong Defendant Mariam binti Nawawi Applicant Phillip Robert Epstein Applicant Ryan Connell Macquisten Applicant Tan Jian Loon Applicant Xue Yao Applicant

Summary

In the first representative action before the SICC, 10 representative claimants representing 356 others sued Terraform Labs, its co-founder Kwon Do Hyeong, and Luna Foundation Guard for losses from the collapse of UST/LUNA cryptocurrencies. The court found Terraform liable for fraudulent misrepresentation regarding UST's stability mechanism and awarded damages to seven claimants totaling approximately US$3 million, but dismissed claims based on breach of unilateral contract and negligent misrepresentation.

Statutes Cited

Arbitration Act (Cap 10)

Evidence Act (Cap 97)

International Arbitration Act (Cap 143A)

s 6(1)

Cases Cited (10)

SLR (9)

[1996] 3 SLR(R) 637 [2001] 2 SLR(R) 435 [2003] 3 SLR(R) 307 [2011] 1 SLR 391 [2013] 3 SLR 801 [2015] 2 SLR 686 [2018] 2 SLR 110 [2024] 1 SLR 524 [2024] 4 SLR 674

UK (1)

[1969] 2 QB 158

Cited By (2)

[2026] SGCA(I) 1

JONATHAN KUPETZ & 9 Ors v TERRAFORM LABS PTE. LTD. & 2 Ors

[2025] SGHC(I) 18

TERRAFORM LABS PTE. LTD.