Terraform Labs and co-founder Do Kwon sued in U.S. court over the collapse of stable coin TERRAUSD
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Do Kwon, the “heartbroken” co-creator of Terra, headlines a raft of defendants named in a class-action suit filed Friday in U.S. District Court in Northern California.
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.
UST and LUNA dropped last month, erasing tens of billions of dollars in value, for which Kwon was “heartbroken”. After promising Terra’s dollar-pegged algorithmic stable coin couldn’t possibly collapse, while also attacking rivals on Twitter.
After all, he’s done his community still approved Terra 2.0. Right now trading at $1.76 down from its
early peak $19.53.
There is 72 pages in the case.
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