A bunch of buyers behind a class-action lawsuit against Terraform Labs and its co-founder Do Kwon over fraud allegations have dropped the case.
In a Sept. 28 submitting in United States District Court for the Northern District of California, attorneys representing plaintiff Nick Patterson, who filed the lawsuit on behalf of buyers, filed a discover of voluntary dismissal solely against Terraform and Kwon. The discover didn’t explicitly state the explanations for dropping the case with out prejudice.
“The [Terraform Labs] Defendants have neither answered the complaint […] nor filed motions for summary judgment,” stated the submitting. “Because the Court has not certified the proposed class for any purpose in this case and this dismissal is without prejudice, it will not bind members of the proposed class.”
1/ In one other win for Terraform Labs, the class-action lawsuit alleging fraud against TFL and @stablekwon has been voluntarily dismissed within the U.S. District Court for the Northern District of California.https://t.co/oYfkblOf0H
— Terra Powered by LUNA (@terra_money) September 30, 2023
Related: Do Kwon says SEC’s extradition request is impossible
Patterson’s authorized crew filed the lawsuit in June 2022 following the collapse of Terraform Labs, which many attributed to kicking off a significant crypto market crash. Kwon and the corporate have since been the goal of many authorities globally for his or her position in an alleged scheme geared toward defrauding buyers.
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 utilizing false journey paperwork. At the time of publication, it was unclear if he will likely be launched in Montenegro or face extradition to the U.S. or South Korea.
Magazine: Terra collapsed because it used hubris for collateral — Knifefight
