Class action lawsuit Albright v. Terraform Labs, Pte. Ltd et al. filed in the District Court for the Southern District of New York was voluntarily dismissed on Monday. The class action filed in August against Terraform Labs, Do Kwon and affiliates accused the defendants of falsely promoting, manipulating and offering TerraUSD (UST) stablecoin and Terra (LUNA).
Class action against Terraform Labs and Do Kwon dismissed
Three Arrows Capital (3AC) co-founder Zhu Su in one tweet on Jan. 10 revealed the voluntary dismissal of a class action lawsuit against Terraform Labs, Luna Foundation Guard and its executives.
Chief Prosecutor Matthew Albright filed a notice in U.S. District Court Southern District Court for the Southern District of New York. According to the notice, the case is voluntarily dropped without prejudice to the defendants.
The defendants include Terraform Labs, Jump Trading, Delphi Digital Consulting, Luna Foundation Guard (LFG), Do Kwon, Nicholas Platias, Jose Macedo, Kanav Kriya and Remi Tetot.
The class action lawsuit accused the defendants of falsely promoting UST algorithmic stablecoin, Terra (LUNA), and other related Terra coins. In addition, the stability of the coins was touted as profits were laundered from Terraform Labs and into the personal accounts of defendants.
The move is likely due to recent revelations of market manipulation and trading of LUNA tokens by Sam Bankman-Fried’s FTX and Alameda Research. Zhu Su and Do Kwon previously blamed Alameda Research and cryptocurrency lender Genesis for the UST depeg and shorting LUNA tokens after the depeg.
However, two class action lawsuits against Terraform Labs and Do Kwon, brought by law firm Bragar Eagel & Squire, PC and securities and consumer rights litigation firm Scott+Scott, are still pending.
Terra (LUNA) price up 12%
The price of Terra (LUNA) is up more than 12% in the past 24 hours, with a current price of $1.55. The 24-hour low and high are $1.37 and $1.82, respectively.
The LUNA price skyrocketed due to the latest developments regarding the Terra 2.0 chain. Jared of TFL in a tweet revealed that Terra Station will automatically update to Station, which is not compatible with Terra Classic (LUNC).
Also Read: Shiba Inu (SHIB) ranks second in most secured crypto projects
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