Do Kwon And Terraform Labs Faces Class-Action Lawsuit.
Do Kwon, the “crushed” co-maker of Terra, titles a pile of litigants named in a class-activity suit recorded Friday in U.S. Region Court in Northern California.
Kwon is joined by a group that includes Terraform Labs, Jump Crypto, and Three Arrows Capital. Plaintiff Nick Patterson is alleging, among other accusations, that Terra tokens were sold as “unregistered securities,” and that the “Defendants made a series of false and misleading statements regarding the largest Terra ecosystem digital assets by market cap, UST and LUNA, in order to induce investors into purchasing these digital assets at inflated rates.”
Kwon and Daniel Shin sent off Terraform Labs in 2018, at first fully intent on overturning installment goliaths like PayPal. Sometime thereafter, the pair raised $32 million, and in 2019 an underlying coin offering yielded $62 million.
UST and LUNA imploded last month, erasing tens of billions of dollars in value, for which Kwon was pilloried online. After promising Terra’s dollar-pegged algorithmic stable coin couldn’t possibly collapse, while also attacking rivals on Twitter, sympathy was scarce.
Yet, that actually didn’t prevent the Terra people group from endorsing “Land 2.0” directly following the dazzling breakdown, a venture that included making another LUNA token and consigning the past one to “LUNA Classic” status, to rather exchange under LUNC.
As of this composition, the new LUNA was exchanging for $1.81 — down from an early pinnacle of $19.54, as per CoinMarketCap — while LUNC was drifting around $.00005.