Terraform Labs Faces a Class Action Lawsuit Alleging Racketeering
- Terraform lab sued again, this time due to alleged extortion.
- The plaintiff, Matthew Albright, and the lawyer launched an investigation by reviewing several published statements of terraform lab.
- The company also faces a farewell lawsuit and investigation.
Terraform labs is facing another lawsuit, this time involving extortion. According to the documents of the people's court, the lawyer representing the plaintiff Michael Albright filed a group lawsuit. The lawsuit alleges that terraform labs violated the blackmailer influence and corruption organization act.
This lawsuit has been mentioned on behalf of all individuals and entities who purchased Terra coins from May 1, 2019 to June 15, 2022. Albright and the judge launched an investigation, including verification of press releases, announcement statements and news media, as well as "other comments, analysis and publication of published reports and information on the accused"
It claims that terraform labs falsely advertised UST, Luna and other related crypto assets through some social channels. It is written in the document that,
"In particular, the defendant bragged about the stability of the coins and ensured that the annual return rate of the coins deposited by terraform labs in the high return deposit application software in the terra blockchain anchor agreement (" anchor ") was 20%. In addition, some defendants engaged in money laundering activities and transferred billions of dollars from terraform labs to a series of personal data cryptocurrency wallets. "
It also emphasized that ust stablecoin was equivalent to a Ponzi scheme, and the high rate of return of the anchor agreement was finally maintained. The report concluded that this caused a vicious cycle of hyperinflation, and then led to the collapse of Luna and UST.
It also cited the words of Remi tetto, a member of the management method Committee of the guard team of the Lunda charity foundation, who said in an online article that this is not sustainable. The lawsuit stipulates that "the plaintiff and the collective members have the right to obtain all specific, general, unique, additional, legal provisions, cancellation, mandatory and adverse impact loss compensation and restoration to normal", as well as other compensation.Terraform lab's endless disaster
Since the Luna and ust crashes, a series of trends have emerged. Litigation and investigation are rapidly depositing, and the company's prospects are not optimistic.
Recently, do Kwon and terraform employees faced fraud charges from the Korean government. The home of Founder Daniel Shin was also raided by officials.
In addition, Du Quan received his first public interview since the collapse of green ecology. On the social platform, data encryption enthusiasts publicly criticized the interview, saying that Kwon tried to produce sympathy and decoration for the crash.