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No relief soon for Do Kwon and Terraform Labs – yet another Class-action lawsuit filed

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Seems like neither the mass of losses happened because of Terra (LUNA) network collapse nor the investors who experienced losses would let the incident be forgotten anytime soon

Possibilities are that you still remember the fallen Terra (LUNA)  network and its co-founder Do Kwon. The reason for this is pretty obvious, the loss that was created due to the fall of Terra network’s UST stablecoin and LUNA token is so huge that both market and investors would need a long time to revive from the damage. Another potential reason for the matter to still be in limelight is because of the lawsuits that Terraform labs and Do Kwon are facing and new one’s are also keep on coming. 

On 17th June, Friday, yet another class action lawsuit was filed against the co-creator of Terra, Do kwon in the US District Court in North California. Do Kwon is not alone in this where other accused outlined in the lawsuit include Terraform Labs, Jump Crypto and venture capitalist firm Three Arrows Capital. The lawsuit was filed by a plaintiff named Nick Patterson.  

Patterson in his filed lawsuit out of many allegations, alleged that Terra tokens LUNA and UST were unregistered securities but still they were sold to investors. This happened because of false and misleading efforts of the defendants regarding the collapsed Terra ecosystem where they persuaded investors to purchase its native tokens UST and LUNA at  inflated rates. 

ALSO READ – Aren’t NFT enthusiasts buying the dip?

It was in 2018 when Do Kwon alon with Daniel Shin launched Terraform Labs with its goal to compete with Paypal like payment giants initially. In the same year, they raised funding worth $32 million and in next year 2019 they generated about $62 million in an initial coin offering or ICO. 

In May, UST algorithmic stablecoin of Terra network lost its parity with the US dollar that led to liquidation of LUNA tokens and eventually the whole Terra ecosystem collapsed. This resulted in the disappearance of assets worth billions of dollars due to which, the sympathy with fallen network was too less while hatred and attacks on Terra network and Do Kwon was in abundance.

However, the Terra network community retaliated back to the situation very soon and in the wake of the sudden collapse of their network, approved Terra 2.0. The project Terra 2.0 or generally called Terra also included a whole new LUNA token, while the previous network and its token had  been renamed as Terra Classic and LUNA Classic (LUNC) respectively. 

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