Court Dismisses Class Action Lawsuit Against Terra Labs And Do Kwon
The lawsuit filed by Matthew Albright against Do Kwon and its associates in the Terra Luna crash has been dropped and dismissed. The lawsuit claimed Do Kwon and his associates manipulated the market price of Terra Luna.
Lawsuit Accusations Dismissed
Do Kwon, the founder of Terra Luna, was involved in a lawsuit filed by Albright in August, accusing him of manipulating the price of Luna and bringing about the currency’s devaluation in May.
Su Zhu, the founder of Three Arrows Capital, informed the public via a tweet that the lawsuit against the Terra Labs company and its founder had been dropped by the court.
Albright was actually disappointed by this court verdict. He expressed his disapproval of the case being dropped without the firms getting sanctioned in a notice he sent to the U.S. district court in New York.
In this case, the defendants included Terra Labs founder, Do Kwon, Jump Trading, and a few other businesses connected to the Luna crash.
These defendants were accused in this lawsuit of deceptively marketing the coins on the Terra blockchain.
There were also allegations that the management had manipulated the coin’s value in order to funnel the profits into their own accounts.
Did FTX Also Have A Hand In Luna Crash?
Prior to the FTX liquidation, it was actually believed that this revelation was the result of recent FTX activities.
FTX founder and sister exchange, Alameda Research were accused of manipulating the price of the LUNA token prior to the crash in May.
The founder of 3AC, Su Zhu, accused FTX of being responsible for the Terra stablecoin’s crash after it lost its peg to the US dollar, and for also having a hand in the crash of the LUNA tokens.
Despite this recent court dismissal, the class action lawsuit brought by another company, Bragel Eagle against Terra Labs and its founder is still very much active and is pending in court.
Even in the midst of this legal dispute and filing, there has been positive sentiment towards the Terra Luna token, which has seen a recent rise. The price of the Luna token, which is currently trading at $1.4, has increased by 11% in just one day.
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