Investors who suffered economic damage from the collapse of the Terra network, with the help of the international law firm Scott+Scott, filed a class action lawsuit against Traform Labs.
Despite most digital assets seeing significant growth this month, Terra Luna 2.0 underperformed. Luna 2.0 cryptocurrency is down 24.37% against Bitcoin in the last 30 days. Luna Token is currently 89.8% away from its all-time high on May 28, 2022. According to Fatman, victims of Terra’s collapse have filed a class-action lawsuit against Traform Labs and Du Covan.
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Class action lawsuit against Traform Labs
Fatman, a well-known crypto whistleblower, shared a registration link on Twitter on July 26 for investors who were financially damaged by the crash of Terra in mid-May. The case is handled by the Scott+Scott law firm.
The defendants in the case are Terraform Labs, Nicholas Platias and Du Cowan. The names of the companies Jump Crypto, Jump Trading, Republic Capital, Republic Maximal LLC, Tribe Capital, Definance Capital, GSR Markets Limited, Three Arrows Capital (3AC) and Luna Foundation Guard (LFG) are also seen in this complaint.
In Fatman’s opinion, de Cowan is a smart person, but he has not used his intelligence properly. Fatman stated that Terra’s founder is doing deceitful things instead of using his genius for good. Du Cowan’s actions not only led to the collapse of thousands of small investors, but also misled some large investors. Fatman further added:
We will join the class action lawsuit filed by the international law firm Scott+Scott in the United States and demand a fair trial for the two Cowans.
The class-action lawsuit against Traform Labs comes as South Korean authorities have also launched an investigation into Terra’s founder. The Luna 2.0 token has not performed well and has lost 24.37% against Bitcoin and 9.62% against the dollar in the past month. Out of 13,099 crypto tokens on the market, Luna is ranked 148 with a market cap of $261.63 million. LUNA is currently 89.8% away from its all-time high.
Tether (USDT) is the most traded currency pair with Luna. According to data from cryptocompare.com, the Tether currency pair accounts for 77% of all Luna transactions. The total locked value of LUNA in decentralized finance (DeFi) markets is about $26.88 million, and there is still $12 million of capital stored in the DeFi protocols of the Terra Classic Chain network. In addition to the Scott+Scott lawsuit, Terra founder Daniel Shin has also been banned from leaving South Korea.
South Korean law enforcement officials are investigating TFL, Shin and Do Kowan. Fatman believes that it is possible for the prosecutor to cooperate with Interpol to issue an exit ban and extradite Cowan. The class action lawsuit against Terraform Labs alleges that all Terra tokens issued by TFL are unregistered securities. Fatman continued his statement and stated that the amount of damage caused to Terra investors is still not clear. Fatman added at the end:
Now is the time to take matters into our own hands. I am tired of seeing an environment where fraudsters think they can easily and brazenly rob thousands of innocent people. People like Du Cowan wear this industry down. It’s time to clean up the crypto space.
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