Terraform Labs CEO accused of false statements about UST stability
The plaintiffs demand compensation from Do Kwon in the amount of the purchase value of the assets
20.06.2022 - 11:55
403
2 min
0
What’s new? A class action lawsuit has been filed against the head of Terraform Labs (TFL) Do Kwon in the US District Court in Northern California. He is accused of selling unregistered securities, as well as false statements about the stability of the algorithmic stablecoin TerraUSD (UST) and its backing token LUNA. The plaintiffs are seeking full recovery of investment losses from Kwon.
Details of the case. The lawsuit alleges that members of Luna Foundation Guard (LFG), a non-profit organization, misled investors by claiming that the fund’s reserve would be sufficient to protect assets. On May 8, stablecoin lost its peg to the US dollar, with UST and LUNA prices plummeting to almost zero in the days that followed. Developers and the community decided to create a new blockchain, Terra 2.0, with new LUNA tokens distributed to holders of old assets at launch on May 28.
The list of those who filed the lawsuit includes cryptocurrency hedge fund Three Arrows Capital (3AC), as well as Jump Crypto, Jump Trading, Republic Capital, Republic Maximal, Tribe Capital, DeFinance Capital, DeFinance Technologies, and GSR Markets.
The plaintiffs also claim that TFL did not register digital assets with the US Securities and Exchange Commission (SEC) in any way. Do Kwon and his company are being asked for compensation in the amount of the purchase value of the tokens and all legal costs.
Earlier, Terra’s 2 000 retail investors filed a class action lawsuit against the US arm of cryptocurrency exchange Binance. The platform was accused of using misleading advertising and selling UST as unregistered securities. The suit also alleges that Biannce.US was not registered as a broker-dealer or an exchange, which may be a violation of the Securities Act.
Useful material?
Telegram 
Twitter Market
According to the founder of TRON, the leading US crypto exchange asked for several hundred million dollars for the listing of TRX
Nov 4, 2024
Incidents
The company conducted fictitious trading for six years to inflate the trading volume of tokens of several companies, receiving payment for these services
Nov 1, 2024
Market
1,5 million addresses have already left applications
Oct 31, 2024
Business
The company began investing in bitcoin in 2020, and since then, the value of its securities has risen by 1700%
Oct 30, 2024
Mining
The Deputy Energy Minister explained that in deficit regions, it is impossible to allocate large capacities for industry enterprises until 2030
Oct 30, 2024
Market
Customers will also be able to withdraw funds to bank accounts using cards
Oct 30, 2024
Cryptocurrency rates
-
Bitcoin
$69 580
BTC
+2.49%
-
Ethereum
$2 428.5
ETH
+1.14%
-
BNB Smart Chain
$563.64
BSC
+2.11%
-
Ripple
$0.515177
XRP
+2.36%
-
Dogecoin
$0.170435
DOGE
+5.8%
-
Cardano
$0.334497
ADA
+2.39%
-
Bitcoin Cash
$343.92
BCH
+4.34%
-
Polkadot
$3.87
DOT
+2.89%
-
Litecoin
$65.65
LTC
-0%
-
Stellar XLM
$0.093886
XLM
+2.93%