Albright Capital's class-action lawsuit against Terraform Labs was voluntarily dismissed.
TFL was accused of fraud by the company, which was particularly concerned about the UST stablecoin.
TFL is still facing additional lawsuits as new developments emerge.
Against Terraform Labs. The lawsuit claimed that TFL committed fraud, focusing on the UST stablecoin among other things.
Terraform Labs has received some relief after a court case filed by an investment firm was dismissed. Based on a legal filing issued on January 9, the case was voluntarily dismissed by Albright Capital. In the lawsuit, Terraform Labs was accused of fraud.
A class action lawsuit was one of many legal challenges TFL was dealing with. It does not provide much relief for the company, but it will satisfy TFL.
The lawsuit claimed that TFL had unlawfully pushed the stablecoin UST, the Terra (LUNA) cryptocurrency, and other related ones. It was also reported that Do Kwon and other executives took millions from the Terra ecosystem.
The collapse of Terra in May 2022 was a catastrophic event for the market, triggering a series of events that saw multiple companies go bankrupt. It also triggered a slew of lawsuits that TFL will have to deal with for quite some time.
Albright's lawsuit was primarily concerned with the stablecoin and its promotion, labeling UST a Ponzi scheme. In the lawsuit, defendants included Luna Foundation Guard, Delphi Digital, Jump Trading, Nicholas Platias, Jose Macedo, Kanav Kariya, and Remi Tetot.
Zhu Su, the co-founder of Three Arrows Capital, sought more coverage of the dismissal, stating “he was wondering how long it would take crypto native media to report on the sudden voluntary dismissal of a class action lawsuit against the Luna Foundation and Luna investors.”
TFL also commented on the situation, claiming that it was yet another success for Terraform Labs. They feel that the facts are on their side and that more will be revealed in the future.
The Terra saga continues, with South Korean officials blocking nearly $90 million in assets of Terraform Labs affiliates. There are also rumors that Sam Bankman-Fried may face an investigation into Terra's collapse.
As per the most recent investigation, Do Kwon is in Serbia. His passport has been revoked by South Korean authorities, making his movement more difficult.
Kwon has denied attempting to flee. Regardless, he is on Interpol's watchlist, despite his claim that the agency's red alert is not an order for his arrest. Recently, he proposed alerting the FBI in an instance in which TFL unintentionally sent a community member $1.5 million in LUNA.
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