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TerraForm Labs and Do Kwon to Face Class Action Lawsuit Filed by FatManTerra

source-logo  thecoinrepublic.com 28 July 2022 00:15, UTC

FatManTerra took the initiative to bring back UST and Luna investors their funds back

On Tuesday, 26th July, Whistleblower FatManTerra announced filing a class action lawsuit against the parent company of fallen Terra network, TerraForm Labs and CEO Do Kwon. For this, Scott+Scott hired for the lawsuit focusing on regaining the investments of UST investors that went into vain with Terra ecosystem collapse. He also added that the cases in any other jurisdiction than the US are likely to work in similar ways. 

Collapse of the Terra ecosystem is one of major incidents that occurred within crypto space. The instance created not only made a huge hole in the portfolio of crypto investors, who invested in UST and Luna, but it started a ripple effect all over the crypto space. The impact of Terra network fall was hard enough that almost the entire crypto industry had to take the hit and cryptocurrencies have plunged drastically. 

On 11th May, an all-new pseudonymous Twitter account showed up with the name ‘FatManTerra’. The account promoted the use of UST peg reserves in the allotment of funds to small crypto investors. This Terra governance proposal was initiated with the aim to minimize the damage that took place in the wake of the network collapse. 

The announcement of Luna Foundation Guard spending their bitcoin (BTC) reserves to buy back Terra assets, disappointed FatMan. This happened prior to the official filing of a proposal of Terra governance and perhaps provoked the Dark Knight of Terra to take such an action. 

FatMan noted in his Twitter thread that his proposal has received support from Ethereum co-founder Vitalik Buterin, leading crypto exchange Binance, and Tron founder Justin Sun. Further, he also reiterated highlighting chunks out of the Terra incident in his threads. 

In his threads, FatManTerra also added bailing out of UST stablecoin in 2021 by Jump Capital, fake volume of Chai, Do Kwon pumping funds to foreign accounts and made fun of Anchor protocol’s volume with intention of creating the stability bluff, etc. 

thecoinrepublic.com