Albright Drops Class Action Lawsuit Against Terraform Labs

Paigambar Mohan Raj
Source: Crypto Briefing

According to recent court filings, Albright has voluntarily dropped its lawsuit against Terra’s parent Terraform Labs. Lead plaintiff Matthew Albright sent a notice to the Southern District of New York’s U.S. District Court. Moreover, the document states that the matter has been voluntarily dropped without prejudice against the defendants.

In a class action lawsuit filed in August, Terraform Labs, Do Kwon, and other defendants face accusations of deceptive advertising, manipulating, and offering TerraUSD (UST) stablecoin and Terra (LUNA). The defendants include Do Kwon, Nicholas Platias, Jose Macedo, Kanav Kriya, Remi Tetot, Jump Trading, Delphi Digital Consulting, Luna Foundation Guard (LFG), and Terraform Labs.

Furthermore, Zhu Su, the co-founder of the bankrupt Three Arrows Capital (3AC), shared the news on Twitter. He said he was “curious how long it will take crypto native media” to report on the development.

Why did Albright dismiss its lawsuit against Terra?

Although the case has been dropped, the legal documents do not reveal the reason behind the decision. However, the recent allegations of FTX and Alameda Research manipulating markets and trading LUNA tokens might have a hand to play. Su and Terra chief Kwon accused Alameda Research of the UST depeg and subsequent LUNA crash. Nonetheless, there is no evidence to support that it is the case.

Nonetheless, two class action cases are still pending against Terraform Labs and Do Kwon. The lawsuits were filed by Scott+Scott and the legal firm Bragar Eagel & Squire P.C.

Furthermore, Do Kwon has evaded authorities questioning over the last several months. According to reports, the Terra chief is hiding in Serbia. The justice ministry of South Korea is seeking the help of the Serbian government in its hunt.

It should be noted that Interpol has already issued a “red alert” on Kwon, and he was told to turn over his passport by South Korean officials. Nonetheless, the authorities decided to revoke his passport even though the deadline had passed.