Investment firm Albright Capital has voluntarily dropped fraud charges against bankrupt Terraform Labs and its executives, including Do Kwon.
Following Terraform’s historic collapse in May 2022, Albright Capital, law firm Scott + Scott, and Bragar Eagel & Squire filed separate class action lawsuits against Terraform Labs.
Albright Capital lawsuit claimed that Terraform Labs was involved in the fraudulent promotion of UST, Terra (LUNA), and related Terra cryptocurrencies.
Additionally, Terraform Labs executives, including Do Kwon, have been accused of withdrawing funds from the Terra ecosystem for personal gain.
However, according to A. motion Filed on January 9, Albright Capital moved to voluntarily dismiss the class action lawsuit against Terraform Labs and Do Kwon without prejudice.
Other defendants named in the motion to dismiss include Luna Foundation Guard, Delphi Digital, Jump Trading, Nicolas Platias, Jose Macedo, Kanaf Kariya and Remi Teto.
3AC’s Zhu Shu Goes to the Rescue
Three Arrows Capital (3AC) co-founder Zhu Shu appears to have brought the recent Albright and Terra lawsuit to the attention of the cryptocurrency media.
Juso murmured January 10th:
I’m curious how long it will take the virtual media to report on this sudden and spontaneous dismissal of the class action lawsuit against the Luna Foundation and Luna’s investors.
In the wake of FTX’s demise, Shu has been vocal in his defense of Terra.
Shu also claimed that FTX’s Sam Bankman-Fried and DCG’s Barry Silbert colluded to shorten UST, leading to the historic collapse of Terra.