While most digital assets in the crypto-economy saw significant gains this month, Terra’s luna 2.0 stagnated as it lost 24.37% against bitcoin in the past 30 days. LUNA is down 89.8% from the token’s all-time high price two months ago on May 28. Additionally, whistleblower Fatman revealed that the victims of Terra’s collapse have filed a class action lawsuit against Terraform Labs, Do Kwon, and Nicholas Platias. .
Crypto whistleblower Fatman reveals involvement in Terra lawsuit so ‘justice can take its course’
On July 26, whistleblower Fatman (@Fatmanterra on Twitter) shared a sign-up link for investors who were financially impacted by Terra’s collapse in mid-May. The case is being handled by law firm Scott + Scott and the defendants include Terraform Labs (TFL), Nicholas Platias and Do Kwon. Additionally, Jump Crypto, Jump Trading, Republic Capital, Republic Maximal LLC, Tribe Capital, Definance Capital, GSR Markets Limited, Three Arrows Capital (3AC), and Luna Foundation Guard (LFG) are included.
At Fatman’s Twitter feed which discusses the lawsuit, the whistleblower complimented Do Kwon’s intellect but noted that the Terra co-founder didn’t use it for good. “Instead of using his genius for good, Do used it to create a scheme so convincing, ingeniously mixing real utility with outright lies, that it not only led to the downfall of thousands of investors, but also to large funds that had been deceived in spite of solid research”, Fatman noticed in the thread. Fatman added:
We will join the class action lawsuit brought in the United States by international law firm Scott+Scott. We are also preparing actions in another jurisdiction. We demand a fair trial to find out all about TFL [and] To do Kwon’s misdeeds and for justice to take its course.
LUNA 2.0 Markets Flounder, South Korean Authorities Investigate Terra Do Kwon and Daniel Shin Co-Founders
As class action participants prepare for the case against TFL, the project’s luna 2.0 token called LUNA has not performed as well as most of the crypto economy. LUNA lost 24.37% against bitcoin (BTC) since last month and 9.62% against the US dollar over the same period. Out of 13,099 existing crypto coins, LUNA is ranked 148 with its market valuation of $261.63 million. Since LUNA’s all-time high on May 28, when it hit $18.87 per unit, LUNA has lost 89.8% in USD value.
LUNA is heavily exposed to tether (USDT) pairs because statistics from cryptocompare.com indicate that USDT accounts for 77% of all LUNA trades in the past 24 hours. USDT is followed by USDC (11.43%), TRY (9.57%), USD (0.68%) and EUR (0.37%). Additionally, the total value locked (TVL) of LUNA in the decentralized finance (defi) world is $26.88 million, while just over $12 million is still held in defi protocols on the Terra Classic chain. In addition to the Scott + Scott lawsuit, Terra co-founder Daniel Shin is banned from leaving South Korea.
South Korean law enforcement officials are investigating TFL, Shin and Kwon and Fatman say a rough translation of the article details that “the prosecutor also discussed the possibility of cooperating with Interpol to issue a red notice for Do Kwon’s extradition.” The class action complaint published by Scott+Scott claims that all Terra tokens that TFL has issued are unregistered securities and that TFL has never been registered with the Securities and Exchange Commission (SEC). In Fatman’s Twitter feed, the whistleblower stress that it was hard to tell how badly some Terra investors were affected by the collapse. Fatman’s Twitter thread concluded by noting:
It’s time to take matters into your own hands. I’m sick of seeing our space invaded by crooks who think they can brazenly rob thousands of innocent people and get away with it. People like Do Kwon make this industry rotten. It is time for a purge so that crypto can be reborn again.
What do you think of the class action lawsuit against members of the Terra team? What do you think of the poor market performance that LUNA 2.0 has seen over the past month? Let us know what you think about this topic in the comments section below.
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