• Investment firm Albright Capital has voluntarily dismissed its fraud charges against the failed Terraform Labs and its executives, including Do Kwon.
• Following the historic Terra collapse in May 2022, Albright Capital had accused Terraform Labs of promoting the UST, LUNA, and related Terra cryptocurrencies deceptively.
• 3AC co-founder Zhu Shu called the attention of crypto media outlets to the recent Albright and Terra lawsuit development.
Investment firm Albright Capital has recently made the move to drop its fraud charges against the failed Terraform Labs and its executives, including Do Kwon. The news comes after the historic Terra collapse in May 2022, when Albright Capital had accused Terraform Labs of deceptively promoting the UST, LUNA, and related Terra cryptocurrencies.
The lawsuit filed by Albright Capital also included other defendants such as Luna Foundation Guard, Delphi Digital, Jump Trading, Nicholas Platias, Jose Macedo, Kanav Kariya, and Remi Tetot. In addition, the lawsuit accused Terraform Labs executives of withdrawing funds from the Terra ecosystem for their personal gains.
A motion filed on Jan 9 revealed that Albright Capital has decided to voluntarily dismiss the class action against Terraform Labs and Do Kwon without prejudice. The news of the dismissal was called to the attention of crypto media outlets by Three Arrows Capital (3AC) co-founder Zhu Shu, who tweeted on Jan 10 about the sudden voluntary dismissal of the class action.
The development has left many in the crypto community surprised, especially given the gravity of the accusations Albright Capital had made against Terraform Labs. It is unclear if the voluntary dismissal of the case means that the charges against Terraform Labs are unfounded or if the parties have come to a settlement agreement. For now, it appears that the outcome of the case is still up in the air.