Another U.S. Law Firm Files Class-Action Lawsuit Against Terraform Labs

Another class action lawsuit emerged in the U.S. against Terraform Labs (TFL) and its co-founder, Do Kwon. They have been accused of selling unregistered securities and making false statements about the stability of the TerraUSD (UST) stablecoin and its related LUNA token.

Terraform Labs And Others Face Second Class Action Suit

According to a press release from Sunday, U.S. law firm Bragar Eagel & Squire, P.C., has filed a class action lawsuit against Terraform Labs, Do Kwon, and other associates in the Northern District of California on behalf of investors who bought Terra-issued tokens between May 20, 2021, and May 25, 2022. Other defendants in the case include Jump Crypto, Jump Trading, Republic Capital, Republic Maximal, Tribe Capital, DeFiance Capital, DeFiance Technologies, GSR Markets, Three Arrows Capital, and Nicholas Platias. The lawsuit is the second class action lawsuit to be filed in the U.S. involving the above parties since the collapse of the Terra ecosystem in May. To cite one example, in June, Scott+Scott Attorneys at Law LLP launched a similar class action lawsuit against Terraform Labs. Following the infamous collapse of Terra's UST and LUNA token, investigations into the underlying causes have heated up. South Korean investigators raided the home of Terraform Labs co-founder Daniel Shin and several exchange offices earlier last week. According to reports, officials seized records in an attempt to prove that Do Kwon and his associates were involved in a fraud against Terra investors.