Do Kwon And Terraform Labs Facing Class-Action Lawsuit

This month, most of the digital assets in the crypto economy have managed to record significant gains. However, Terra’s luna 2.0 has remained stagnant and has actually lost 24.37% against BTC in the last month.

On May 28th, the LUNA token had been enjoying an all-time high, but it had recorded a decline of 89.8% since then.

Furthermore, whistleblower Fatman recently disclosed that a class-action lawsuit has been filed against Do Kwon, Terraform Labs, and Nicholas Platias by victims of the Terra collapse.

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The lawsuit

Fatman posted a sign-up link on July 26th for those investors who had suffered in mid-May when the Terra ecosystem had collapsed.

Litigation firm Scott+Scott is handling the lawsuit and Do Kwon Nicholas Platias and Terraform Labs have been listed as the defendants.

Some of the other names that are also included are Three Arrows Capital (3AC), GSR Market Limited, Tribe Capital, Luna Foundation Guard (LFG), Republic Capital, Definance Capital, Jump Trading, Republic Maximal LLC, and Jump Crypto.

In his Twitter thread about the lawsuit, Fatman praised Do Kwon’s intellect but added that the co-founder of Terraform Labs had not used it for good.

The whistleblower said that he had used his genius to create a scheme that was extremely convincing and mixed lies with real utility.

Therefore, it had resulted in thousands of people losing their money and even some big funds had been fooled, despite doing solid research.

He said that not only was the lawsuit being filed in the US, but they would also do the same in another jurisdiction as well.

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He added that their demands were for a fair trial for uncovering the wrongdoings of Do Kwon and Terraform Labs in order to ensure justice.

LUNA’s performance

While the case has been filed, it should be noted that the LUNA 2.0 token has not been doing so well, as it declined against BTC by 24.37% and also lost 9.62% against the greenback in 30 days.

Its market valuation is around $261.63 million and it holds the 148th position out of 13,099 coins. On May 28th, it reached an all-time high of $18.87 per unit but has lost 89.98% since then.

Other investigations

Other than the lawsuit from Scott+Scott, South Korea has also imposed a ban on Daniel Shin, Terra’s co-founder, which means he cannot leave the country.

The law enforcement officials in South Korea are investigating Do Kwon, Shin, and Terraform Labs. Fatman said that the prosecutor may also cooperate with Interpol for extraditing Do Kwon.

According to the class-action lawsuit that was recently filed, the terra tokens that were issued by the company were unregistered securities and Terraform Labs did not register them with the Securities and Exchange Commission (SEC).

Fatman also said in his Twitter thread that some of the investors had suffered a great deal after the Terra collapse. He said that it was time to step up and prevent scammers from robbing people and getting away with it.