Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

Terra Developer Do Kwon Hit With Another Class-Action Lawsuit

Published 19/06/2022, 20:05
Updated 19/06/2022, 20:40
© Reuters.  Terra Developer Do Kwon Hit With Another Class-Action Lawsuit

A lawsuit has been filed in U.S. District Court, Northern District of California, by Scott+Scott Attorneys at Law, against Terra (CRYPTO: LUNA) founder Do Kwon and his developer company Terraform Labs.

In the lawsuit, it is stated that Kwon's project team misrepresented Terra's stability to win the trust of crypto investors.

The lawsuit also claims that between May 6 and May 9, structural infirmities specific to the Terra ecosystem "exposed the truth regarding the UST/LUNA pair." Within a week, the "prices of UST and LUNA collapsed by about 91% and 99.7%, respectively."

Also Read: Terra's Do Kwon Denies Cashing Out $2.7B, Michaël Van De Poppe Says He Deserves Jail

The plaintiff claims that Terra tokens bear all the hallmarks of being investment contracts, although “no registration statements have been filed with the SEC.”

The lawsuit mentions that the Luna Foundation Guard, formed to protect the LUNA token, inaccurately portrayed the security of the token when it came to a “proverbial run on the bank by UST/LUNA investors.”

Earlier in June, Kwon was sued by Korean legal firm LKB & Partners as numerous other investors prepared legal challenges against Terra.

Photo: Do Kwan, Terra site video screenshot

© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Read the original article on Benzinga

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.