A person/group named “FatMan” reporting from within Terra may face a lawsuit under the ‘Securities Act’ for the sale of leading crypto exchanges UST and LUNA, including Binance, Gemini, Kraken and Coinbase, in the new information he leaked.
The LUNA and UST of the Terra ecosystem created a worldwide meat after the collapse and resulted in the loss of billions of dollars in a very short time. Despite the ‘LUNA 2.0’ offer to save Terra, which was announced yesterday, investigation news and investigation allegations from many different places, especially South Korea, are on the agenda.
Leading Exchanges May Face Lawsuits
FatMan, who leaked inside Terra, announced in a tweet on May 26 that the top law firm in the US is preparing a class arbitration case against Binance, Gemini, Kraken and Coinbase. Crypto exchanges may face a number of charges under the Securities Act for selling UST and LUNA to US customers.
One of the whistleblowers claimed that a class action lawsuit would not be filed, but a class arbitration case. However, class action lawsuits are also being considered, as investors have lost confidence in Terra.
As we have already conveyed to you, the Terra community harshly criticized their proposal to bring the UST stablecoin back to life without LUNA, with the latest published proposal. The community is not sure of the outcome of the claims of burning “1 billion tokens”, which are also frequently on the agenda. LUNA was trading at $0.0016 while UST was trading at $0.094.
Luna Foundation Guard member Remi Tetot recently suggested that an investigative journalist may have found evidence that Citadel, the major hedge fund behind the GME short, was responsible for UST’s de-pegging attack. The attack may have started the LUNA and UST death spiral.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, KoinFinans and the author of this content cannot be held responsible for personal investment decisions.