Series Of Class Action Lawsuits Filed Against Terra, Do Kwon And Affiliates

By Varinder Singh
Terra Founder Do Kwon Extradition Montenegro Court

Another class action lawsuit has been filed against TerraForm Labs, its founder Do Kwon, head of research Nicholas Platias, and affiliated firms that duped billions from investors. Bragar Eagel & Squire PC has filed a class action lawsuit alleging the defendants for violating the Exchange Act, the Securities Act, the Racketeer Influenced and Corrupt Organizations Act (RICO), and provisions of the California Common Law.

Advertisement
Advertisement

Class Action Lawsuits Against Do Kwon and TerraForm Labs

Three class action lawsuits have now been filed against TerraForm Labs, Do Kwon, and Nicholas Platias in the U.S. District Court for the Northern District of California, with a plaintiff joining deadline of August 19.

Bragar Eagel & Squire PC in a press release on July 25 announced filing a class action lawsuit against TerraForm Labs, founder Do Kwon, and Nicholas Platias. Along with, affiliates including Jump Crypto, Jump Trading, Republic Capital, Republic Maximal, Tribe Capital, DFinance Capital, DFinance Technologies, GSR/GSR Markets, and Three Arrows Capital (3AC).

The class action has been filed on behalf of all investors, including individuals and companies, who purchased or acquired Terra tokens between May 20, 2021 and May 25, 2022. The tokens include TerraUSD (UST) and Terra (LUNA), along with KRT, ANC, WHALE, ASTRO, APPOLO, XDEFI, MINE, aUST, vUST, MIR.

Moreover, Mirrored Assets such as mBTC, mETH, mVIXY, mTSLA; and Liquidity Pool tokens such as UST-mVIXY-LP, bLUNA-LUNA-LP, XDEFI-UST-LP; and Bonded Assets such as bLUNA and bETH) are also included.

Scott+Scott Attorneys at Law LLP and The Rosen Law Firm have filed similar class action lawsuits having the same defendants, tokens, and allegations in the California district court.

These class action lawsuits accuse the defendants for selling and marketing unregistered securities including LUNA, UST, and other tokens; deceiving retail investors by running an illegal scheme; civil conspiracy; and racketeering.

Advertisement
Advertisement

South Korea Escalates Fraud Investigation on Do Kwon and TerraForm Labs

South Korea and the U.S. investigations teams had earlier agreed to share details on their investigations into Do Kwon and the Terra-LUNA collapse.

In fact, South Korea’s investigation team raided 15 crypto companies and exchanges, as well as, the home and offices of TerraForm Labs co-founder Daniel Shin last week, escalating investigations into fraud allegations against Do Kwon and TerraForm Labs.

The fresh round of investigations has pushed Terra’s USTC and LUNC prices downwards, which were rising continuously due to community-led token burning.

Advertisement
Varinder Singh
Varinder has over 10 years of experience and is known as a seasoned leader for his involvement in the fintech sector. With over 5 years dedicated to blockchain, crypto, and Web3 developments, he has experienced two Bitcoin halving events making him key opinion leader in the space. At CoinGape Media, Varinder leads the editorial decisions, spearheading the news team to cover latest updates, markets trends and developments within the crypto industry. The company was recognized as Best Crypto Media Company 2024 for high impact and quality reporting. Being a Master of Technology degree holder, analytics thinker, technology enthusiast, Varinder has shared his knowledge of disruptive technologies in over 5000+ news, articles, and papers.
Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.