Terraform Labs CEO, Do Kwon has been hit by another class-action lawsuit, and this time it has been brought up by one of the most popular crypto community members 'FatManTerra', against Kwon and his affiliates. Quite recently, Fatman confirmed that he has decided to add to the long list of lawsuits that Terra is already facing. He would be joining the lead plaintiff Nick Patterson in another class-action lawsuit against Terraform Labs and the VC firms that make up the Luna Foundation Guard.
Just last Sunday, Bragar Eagel and Squire issued a press statement announcing plans to bring a lawsuit against Terra. The firm basically focuses on representing individuals and institutional investors in complicated financial litigation involving derivatives, securities, and commercial law. Following this, right after the collapse of LUNA and its sister stablecoin TerraUSD, announced through its attorneys to recover UST investments.
The claims against Terra are that CEO Kwon and his affiliates have been trying to carry out a plan, scheme, or conduct to deceive investors. They are persuading investors to purchase Terra tokens at artificially inflated prices, violating the Exchange Act. Additionally, the accusers also claim that Terraform Labs sold unregistered securities in violation of the Securities Act. Among the tokens named in Fatman's filings are TerraUSD, Terra, KRT, ANC, WHALE, and others. FatMan recalled that he was heartbroken when he saw the entire Terra ecosystem collapse when the Terra UST got de-pegged.
Terra LUNA was one of the greatest cryptocurrencies in the market and its sudden declination wreaked havoc on the market. And now, speculations are revolving around the market that the rising number of lawsuits will only continue to harm the investors and cause greater financial risks. Only time will tell what further adversity awaits Do Kwon, but it is for sure that the investors are feeling the heat.
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