- 3AC founder Zhu Su highlights that a major class action suit against TFL and Do Kwon was voluntarily dismissed.
- TFL still faces several other lawsuits as Do Kwon’s whereabouts remain unknown.
Some disgruntled investors in the Terra blockchain collapse are withdrawing their legal actions against the network’s key players. One such investor is Matthew Albright who has now withdrawn a class action suit he filed against Do Kwon, Terraform Labs, and others.
The latest court filing made by Albright and his lawyers stated that they were voluntarily withdrawing the case. The filing adds that the dismissal is without prejudice and cost against the defendants.
Zhu Su, founder of Three Arrow Capital, highlighted in a tweet that the voluntary dismissal was sudden and needed to be highlighted by the media.
Curious how long it will take cryptonative media to report on this sudden voluntary dismissal of class action against Luna foundation and Luna investors pic.twitter.com/8SyMhB4u4g
— Zhu Su 🔺 (@zhusu) January 10, 2023
Albright first filed the case in August 2022 on behalf of all persons and entities who purchased the Terra coins between May 2019 and June 2022.
Companies named as defendants include then-Terra Classic core development company Terraform Labs (TFL), Luna Foundation Guard (LFG), Delphi Digital Consulting, and Jump Trading. Individual defendants included Jose Macedo, Kanav Kariya, Nicholas Platias, Remi Tetot, as well as TFL founder Do Kwon.
Majorly, the plaintiff accused TFL of violating the Racketeer Influenced and Corrupt Organizations (RICO) Act. The suit claimed that TFL falsely promoted UST, Luna, and other associated crypto assets via various social channels.
In particular, Defendants touted the stability of the coins and guaranteed 20% annual returns on coins deposited in Terraform Labs’ high-yield savings application on the Terra blockchain—the Anchor Protocol (“Anchor”),
the suit said.
The plaintiff added that investigations had found that certain other defendants engaged in “a pattern of money laundering activity.” The claim added that the defendants siphoned billions of dollars from TFL before the collapse of the Terra ecosystem.
Could the collapsed Terra Classic claw its way back to the top?
TFL, LFG, and Do Kwon are also facing multiple other lawsuits in other jurisdictions. Two pending class action suits include cases filed by Scott+Scott and the legal firm Bragar Eagel & Squire P.C.
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Similarly, Do Kwon has continued to evade law enforcement. As per the latest rumors from South Korean local media Chosun Ilbo, the CEO is currently hiding out in Serbia. There is an Interpol red notice out for his arrest in relation to the wipeout of over $40 billion of investors’ funds. South Korea has also asked him to turn in his passport.
While Do Kwon remains unlocatable, the Terra Classic ecosystem seems to be staging a comeback. LUNC, the renamed token of the ecosystem, is up 81.9% in the last six months as its market cap has again crossed $1 billion. In the last 24 hours, LUNC is up 3.08%, trading at $0.000169.
