A class-action lawsuit against Terraform Labs and its co-founder Do Kwon over fraud allegations has been dropped. The notice of voluntary dismissal was filed on Sept. 28 in the United States District Court for the Northern District of California, and did not state the reasons for dropping the case without prejudice. The court had not certified the proposed class for any purpose in the case.
The lawsuit was filed in June 2022 following the collapse of Terraform Labs, which many attributed to kicking off a major crypto market crash. Kwon and the company have since been the target of many authorities globally for their role in an alleged scheme aimed at defrauding investors. In February, the U.S. Securities and Exchange Commission filed a civil suit against Kwon and Terra for allegedly “orchestrating a multi-billion dollar crypto asset securities fraud”.
Authorities in Montenegro arrested Kwon in March and subsequently sentenced him to 4 months in prison for using false travel documents. At the time of publication, it was unclear if he will be released in Montenegro or face extradition to the U.S. or South Korea.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | Asia |
| Countries | 🇺🇸 🇲🇪 |
| Sentiment | negative |
| Relevance Score | 8 |
| People | Montenegro, Nick Patterson, Do Kwon, U.S. Securities and Exchange Commission, Knifefight |
| Companies | Montenegro, South Korea, United States District Court for the Northern District of California, Terraform Labs, U.S. Securities and Exchange Commission |
| Currencies | None |
| Securities | None |
