Lawsuit Against Terraform Labs Increases As Plaintiff Albright Charges On Behalf May Terra Collapse’s Victims
The lawsuit against Terraform Labs has not declined but rather is on the increase daily. According to a report by the legal news outlet Law360, Terraform and two of its executives which include the Terraform Labs CEO, Do Kwon, were accused of violating the Racketeer Influence and Corrupt Organization Act.
The charge against them was as a result of the UST inflation and promotion of false information in the recent Terra collapse, which claimed multi-million dollars, almost $80 million.
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As stated by the Law360:
“Defendants touted the stability of the coins and guaranteed 20% annual returns on coins deposited in Terraform Labs’ high-yield savings application on the Terra blockchain — the Anchor Protocol,”
Albright Files Lawsuit Against Terraform Labs On Behalf Terra Collapse’s Victims
It is good to know that this lawsuit was filed as far back as May 1st, 2019 in New York federal court by Lead Plaintiff Matthew Albright on behalf of TerraUST collapse victims, who did transact with stablecoin between 1st of May, 2019 and June 15, 2022.
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The lead plaintiff alleged that some of the defendants engaged in a series of laundering activities that allow them to embezzle dollars in million to their crypto wallets as he stated that the TerraUST is a Ponzi scheme, which sustained its value via the demand of Anchor Protocol’s excessive yields.
Albright’s Show The Reasons The Laundering Was The Handwork Of Terraform Labs
In this regard, Albright said; “As long as demand for UST remained high, Terra’s UST/Luna exchange mechanism will keep the supply of Luna relatively low and sustain a Luna price that could support UST’s peg,”
Albright also said; “But as soon as the demand for UST fell and users began redeeming UST for Luna in large quantities, Luna could enter a vicious cycle of hyperinflation that would collapse its price and UST with it.”
All the above statements stated by Albright were to prove that Terraform Labs and its executive were responsible for the money laundering of the masses and aside from the points, he stated some additional proof to solidify his proof.
Series Of Lawsuits Faced By Terraform Labs And Its Executives
As stated earlier, Terraform Labs and its executives have been facing a series of a lawsuit from one region to another. For instance, Terraform Labs’ officials have been banned from leaving the country at the moment. Also, the crypto exchange that has hands during Terra’s collapse in the South Korea which includes Upbit and Korbit has been through a lot of allegations, and at last, the crypto exchanges promised to compensate the Terra crash victims for their loss.
Also, in June, shortly after the collapse, Scott + Scott’s Attorney filed a class action lawsuit against different persons suspected to be part of the unforgettable Terra (LUNA) fall. The renowned litigation firm filed the case in the U.S. District Court for the Northern District of California. The lawsuit primarily targets Do Kwon, and TerraForm Labs.
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