U.S. District Court Lawsuit against Terraform Labs

Following the collapse of Terra USD (UST), Terraform Labs and several crypto companies were brought in a class action lawsuit.

According to documents filed in the U.S. District Court in Northern California, Terraform Labsl selling securities and deceiving investorsflying.

In the lawsuit filed, with the exception of Terraform Labs; Jump Crypto, Jump Trading, Republic Capital, Definance Capital, GSR Markets, Three Arrows Capital, Nicholas Platias and company CEO Do Kwon is located.

The court accused the companies it sued for repeatedly praising the UST. Also, the court ruled that Terra tokens are not securities.the plaintiff’s claiming Terra’s lawyers argue the opposite.

Claiming that the co-founder of Three Arrows Capital told people to take out loans and invest in Terra by showing them bitcoin collateral, the plaintiffs cited a post also shared by Anchor Protocol, which uses the Terra blockchain. to mislead people suggested.

In addition, according to the news in the South Korean media today, the Seoul Southern District Attorney’s Office, some of Terra’s key employees travel ban for brought.

on June 9 US Securities and Exchange Commission Bloomberg According to the news, it launched an investigation against UST, which caused a major collapse in the crypto money markets.

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