Albright Capital voluntarily drops lawsuit against Do Kwon, Terraform Labs Albright Capital voluntarily drops lawsuit against Do Kwon, Terraform Labs
Albright Capital had accused Terraform Labs and its executives of deceptively promoting UST, LUNA, and related Terra cryptocurrencies.
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Updated: Aug. 13, 2023 at 4:39 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Investment firm Albright Capital has voluntarily dismissed its fraud charges against the failed Terraform Labs and its executives including Do Kwon.
Following the historic Terra collapse in May 2022, Albright Capital, law firm Scott +Scott, Bragar Eagel & Squire independently filed class actions against Terraform Labs.
Albright Capital in its lawsuit alleged that Terraform Labs had engaged in the deceptive promotion of the UST, Terra (LUNA), and related Terra cryptocurrencies.
In addition, Terraform Labs executives including Do Kwon were accused of withdrawing funds from the Terra ecosystem for their personal gains.
However, according to a motion filed on Jan 9, Albright Capital has moved to voluntarily dismiss the class action against Terraform Labs and Do Kwon without prejudice.
Other defendants named in the dismissal motion include Luna Foundation Guard, Delphi Digital, Jump Trading, Nicholas Platias, Jose Macedo, Kanav Kariya, and Remi Tetot.
3AC’s Zhu Shu to the rescue
Three Arrows Capital (3AC) co-founder Zhu Shu appeared to have called the attention of crypto media outlets to the recent Albright and Terra lawsuit development.
Zhu Su tweeted on Jan 10:
Curious how long it will take cryptonative media to report on this sudden voluntary dismissal of class action against Luna foundation and Luna investors.
In the wake of the FTX collapse, Shu has been speaking out in defense of Terra. He claimed that the Terra LUNA collapse was the brainchild of bankrupt FTX and DCG.
Shu also alleged that FTX’s Sam Bankman-Fried and DCG’s Barry Silbert had colluded to short UST, which led to the historic Terra collapse.
A spokesperson for Terraform Labs reached out to CryptoSlate and said:
“In another victory for Terraform Labs, the plaintiff in Albright v. Terraform Labs voluntarily dismissed the case after it was demonstrated that he had sustained no injury. From the moment the Terra ecosystem was attacked and UST depegged, TFL has been adamant that neither the company nor its principles committed any wrongdoing. Since then, South Korean prosecutors had nine of their nine detention warrants rejected by the courts, the LFG report was released and demonstrated the above-and-beyond efforts by LFG and TFL to defend the UST peg, an explanation emerged for the attack itself, and now this case has been voluntarily dismissed. The intervening months have confirmed that the facts are on our side, and more are and will continue to come to light.”
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Christian Nwobodo
Christian is a crypto-curious nerd who loves to investigate how protocols work under the hood. Christian is interested in DeFi protocol research, token economics, and on-chain analytics.
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Terra (LUNA) is a public blockchain protocol that emerged from Terra Classic.
Terraform Labs
Terraform Labs is a startup that created Terra, a blockchain protocol and payment platform used for algorithmic stablecoins.
Do Kwon began his professional journey as an engineer, contributing to tech giants Apple and Microsoft.