An investor in crypto currencies has voluntarily dropped their case against Terra.
After asserting that the company's stablecoin UST constituted a Ponzi scheme that inflicted losses for him and others, a crypto investor has elected to drop a class action suit against Terraform Labs (TFL).
According to a document (1) that was submitted to the court on January 9, it was shown that Matthew Albright had his complaint dismissed without prejudice. This indicates that he can still re-file the complaint later if he so chooses.
It is not yet apparent if Albright has joined other existing legal disputes against Do Kwon and Terraform. But it seems likely that he has.
Scott+Scott and Bragger Eagle & Squire, two law firms based in the United States, are currently involved in class-action litigation against Terraform and other affiliates. The lawsuits make similar allegations, namely that depositors were misled into purchasing Terra tokens at artificially inflated prices.
In an interview, a Terraform Labs spokesman stated that Albright decided to drop the case "after it was proven that he had sustained no injury."
"South Korean prosecutors had nine of their nine detention warrants rejected by the courts," said the spokesperson for the defense team.
"The LFG report (2) was released and demonstrated the above-and-beyond efforts by LFG and TFL to defend the UST peg. An explanation emerged for the attack itself," said the spokesperson, "and now this case has been voluntarily dismissed."
The Fallout of UST/LUNA Collapse
Investors lost roughly $45 billion as a direct result of the failure of UST and its sister token, Luna, which occurred in the same year and caused a loss of nearly $40 billion in symbolic value. According to one frightening account (3), a guy in Taiwan is said to have taken his own life after suffering a financial loss of $2 million due to his investment in Luna tokens.
The case filed by Albright names several additional defendants, including the co-founder of Terraform Labs, Do Kwon, Jump Trading, Delphi Digital, and Luna Foundation Guard.
According to Law360, Jump Trading filed (4) a motion to dismiss the complaint about a month ago, stating that the investor had not established that Jump or its president were involved in "racketeering" on the part of Terraform. The motion was submitted to a federal judge.
On Tuesday, the co-founder of Three Arrows Capital, Su Zhu, tweeted about the dismissal of Albright and used the word "sudden" to describe it. Zhu, whose crypto currency hedge fund failed after TerraUST's failure, recently supported the failed stablecoin while blaming Digital Currency Group and Sam Bankman-FTX Fried for playing a role in LUNA's failure. Zhu's crypto hedge fund fell following TerraUST's failure.
He stated this in a discussion on Twitter on January 3, claiming that DCG "conspired with FTX to attack Luna" and "made a fair bit doing so."
Additionally, crypto currency community members have criticized him for placing blame on parties other than himself and co-founder Kyle Davies. According to reports, both currently reside in Dubai, which is located in the United Arab Emirates.
Aside from being a center for crypto currency trading and exchange, the United Arab Emirates is among the top two countries for quality of life among the approximately 80 countries worldwide that do not have an extradition treaty with US.