FatManTerra announces class action lawsuit against Terraform Labs, Do Kwon, Jump Capital FatManTerra announces class action lawsuit against Terraform Labs, Do Kwon, Jump Capital
A class action lawsuit naming Do Kwon personally as a defendant has been announced by FatMan Terra as he retells his story and why he created the FatManTerra account.
2 min read
Updated: Jul. 27, 2022 at 9:52 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
The now renowned Dark Knight of Terra, FatManTerra, has announced a class action lawsuit through US solicitors, Scott+Scott in an attempt to recoup UST investments following the collapse of the Terra ecosystem.
Lawsuit Sign-Up Link Announcement for UST Victims
On May 11, as UST depegged, I created an account named FatMan and posted a proposal outlining how the LFG could use UST peg reserves to refund small holders in order to mitigate the most severe impacts of the crisis… (1/15)
— FatMan (@FatManTerra) July 26, 2022
In a Twitter thread released Tuesday, FatManTerra revealed he is collaborating with the US legal firm Scott+Scott to establish a class action lawsuit for the victims of the UST collapse. He has also revealed that cases in jurisdictions outside the US are likewise in the works.
On May 11, 2022, a new Twitter account was created to promote a Terra governance proposal to “use UST peg reserves to refund smallholders in order to mitigate the most severe impacts of the crisis.” This account was to become the home of the pseudonymous FatManTerra.
FatManTerra’s proposal was supported by” Vitalik, Binance, and Justin Sun” according to FatMan’s thread and “involved a direct conversion to USDC and refund to UST holders using an FDIC-style cap.”
Before an official proposal could be voted on within the official governance protocol for Terra on Terra Station, the Luna Foundation Guard announced that the Bitcoin reserves had been used to buy back Terra assets via OTC trades. FatMan recounted that he was “heartbroken” to see a system he “truly believed in” collapse in this manner with the UST peg lost and the reserves fully depleted.
In the thread, FatMan recalled many parts of the Terra story he unveiled over the past few months. He recounted the fake Chai volume to inflate demand artificially, Jump capital bailing out UST in 2021, Do Kwon siphoning funds to offshore accounts, and spoofed Anchor volume to create “a facade of stability.”
FatManTerra finished the thread by empathizing with other investors stating, “I can’t convey their heartbreak in a tweet.” He continued to say that he is “sick” of the scammers in the crypto industry and that people like Do Kwon are making it “rotten.” He ended the thread with a call to action;
“We demand a fair trial to uncover all of TFL & Do Kwon’s wrongdoings and so that justice can take its course… One way or another, Do Kwon will either atone for his sins or face retribution”
Information on the class action lawsuit can be found below.
It's hard to put into words how deeply this has affected victims. Thousands of people have lost years of their savings – I can't convey their heartbreak in a tweet. It takes a true sociopath to see all of this and laugh without an aota of remorse or regret. (13/15)
— FatMan (@FatManTerra) July 26, 2022
EDIT 9.51 PM July 27: Added link to Fatman Terra’s proposal and added “voted on.”
Mentioned in this article
Author 
Liam 'Akiba' Wright
Also known as "Akiba," Liam Wright is a reporter, podcast producer, and Editor-in-Chief at CryptoSlate. He believes that decentralized technology has the potential to make widespread positive change.
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Terra is a blockchain protocol that uses fiat-pegged stablecoins to power price-stable global payments systems.
Terraform Labs
Terraform Labs is a startup that created Terra, a blockchain protocol and payment platform used for algorithmic stablecoins.
Luna Foundation Guard
LFG is dedicated to supporting a vibrant community of blockchain innovators committed to developing a decentralized global economy.
Do Kwon began his professional journey as an engineer, contributing to tech giants Apple and Microsoft.