The Terra (LUNA) crash continues to cause trouble to its founders, related firms, and the whole cryptocurrency space.
Along with the ongoing investigations against TerraForm Labs & its founder Do Kwon, three lawsuits have been filed now.
The stockholder rights law firm Bragar Eagel & Squire PC filed the latest class action lawsuit against TerraForm Labs founder Do Kwon, Three Arrow Capital, and connected firms and individuals.
The recent lawsuit charges the defendants with allegations that they have violated the Exchange Act, the Securities Act, the Racketeer Influenced and Corrupt Organizations Act (RICO), and provisions of the California common Law as it involves selling unregistered securities like LUNA, UST, and other, misleading investors, civil conspiracy.
The dispute was charged on behalf of individuals or firms who had purchased Terra tokens such as UST, LUNA, KRT, ASTRO, APPOLO, ANC, vUST, and Liquidity Pool tokens, among others, between May 20, 2021, and May 25, 2022.
Three Class Action Lawsuits Against Do Kwon & TerraForm Labs
Scott+Scott Attorneys filed the previous two class actions at Law LLP and The Rosen Law Firm against the same individuals, firms, and tokens.
The lawsuit also charges the defendants that they have breached the Securities Act as it is believed that they were part of TFL’s negligence in registering the Terra tokens and not disclosing the monetary value of Terra tokens.
On the other hand, as reported earlier, the South Korean investigations team and the US investigation group have given consent to share the complete information of the investigations done against Do Kwon and Terra Network.
Recently, the South Korean team has also raided 15 crypto-related firms along with TerraForm Lab co-founder Daniel Shin’s residence and office.
Now, the new lawsuit has pulled back the prices of Terra’s USTC and LUNC, which were on a bull run because of community-led token burning.