April 19, 2024
Investors Abandon Class Action Lawsuit Against Terraform Labs and Do Kwon
Policy & Regulation

Investors Abandon Class Action Lawsuit Against Terraform Labs and Do Kwon

Investors who had filed a class action lawsuit alleging fraud against Terraform Labs and its co-founder, Do Kwon, have abandoned their claim.

Lawyers for plaintiff Nick Patterson, who brought the complaint on behalf of investors, filed a notice of voluntary dismissal solely against Terraform and Kwon on September 28 in the United States District Court for the Northern District of California. The grounds for dismissing the lawsuit without prejudice were not stated in the notification specifically.

“The [Terraform Labs] defendants have neither answered the complaint […] nor filed motions for summary judgment,” said the filing. “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.”

In June 2022, following the demise of Terraform Labs, which many believed to be the catalyst for a significant crypto market meltdown, Patterson’s legal team filed the complaint. Since then, Kwon and the business have come under fire from several agencies throughout the globe for their suspected involvement in a plot to swindle investors.

Kwon and Terra were named in a civil lawsuit by the U.S. Securities and Exchange Commission (SEC) in February for allegedly “orchestrating a multi-billion dollar crypto asset securities fraud.” Kwon was detained by Montenegrin authorities in March and later given a four-month jail term for using fraudulent travel credentials. It was unknown at the time of publishing whether he would be freed in Montenegro or would be subject to extradition to the United States or South Korea.

Image: Freepik

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