• Plaintiffs in a class action lawsuit against TerraUSD and its affiliates voluntarily dismissed their case on Monday.
• Matthew Albright filed the lawsuit on behalf of others against Terraform Labs (TFL), Pte Limited, and other affiliates in the Southern District of New York Court in August 2022.
• The lawsuit could be linked to the November tweets by 3AC’s cofounder Zhu Su that FTX and Alameda Research manipulated the crypto market.
On Monday, the plaintiffs in a class action lawsuit against TerraUSD and its affiliated companies voluntarily dismissed their case. Matthew Albright, the lead plaintiff in the case, filed a notice in the Southern District of New York Court in August 2022 on behalf of others against Terraform Labs (TFL), Pte Limited, and other affiliates. The notice stated that the case against the defendants has been voluntarily dismissed. The defendants include Terraform Labs, Do Kwon, Delphi Digital Consulting, Luna Foundation Guard (LFG), Jump Trading, Nicholas Platias, and three others.
The plaintiffs alleged that the defendants falsely promoted, manipulated, and offered UST stablecoin and LUNA. According to the lawsuit, the defendants falsely projected the coins’ stability while laundering the profits from Terraform Labs into personal accounts. They accused the defendants of misappropriating the profits from Terraform Labs and using them to benefit themselves.
The lawsuit could be linked to the November tweets by 3AC’s cofounder Zhu Su that FTX and Alameda Research manipulated the crypto market. Zhu claimed that FTX was part of a conspiracy that resulted in the UST collapse. Three Arrows Capital got hit badly by the UST collapse and blamed FTX for the fallout.
Despite the voluntary dismissal of the case, the plaintiffs have not given up their fight for justice. They have vowed to continue to pursue justice and have called on other investors who have been affected by the UST collapse to join them in their fight. The defendants have yet to comment on the voluntary dismissal of the case.