The Terra collapse continues to make headlines with a new lawsuit against the firm, founders, and VCs in the US.
In a lawsuit filled with promises from Do Kwon, the Luna Foundation Guard, and other Terra-related entities, an Illinois-based plaintiff has alleged that all parties involved misled investors about whether all Terra tokens are actually securities, among other allegations., filed on Friday in US District Court in Northern California by Nick Patterson, alleges several VS firms, Terraform Labs, and founder Do Kwon of violating federal securities laws with the sale and promotion of UST and LUNA.
“On top of selling unregistered securities with the Terra Tokens, Defendants made a series of false and misleading statements regarding the largest Terra ecosystem digital assets by market cap, UST and LUNA, in order to induce investors into purchasing these digital assets at inflated rates.” The lawsuit also focused on Do Kwon and his rather controversial behavior prior to the collapse of the tokens. “One of Kwon’s go-to insults is to demean and delegitimize his detractors or critics of the Terra Tokens by dismissing them as “poor.””
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