Class Action Allegs Terraform Labs Misleading Investors – Bitcoin News

Following the decoupling of the Terra stablecoin, Terraform Labs and a number of other crypto companies have filed a class-action lawsuit over the collapse of terrausd (UST). The case against Terraform Labs (TFL) was brought by plaintiff Nick Patterson on behalf of other similar circumstances and law firm Scott+Scott LLP.

Class Action Filed Against TFL and Affiliates – Plaintiffs Claim Terra-Based Tokens Are Unregistered Securities

Terraform Labs is accused of selling unregistered securities and misleading investors, according to documents recently filed in U.S. District Court in Northern California. In addition to TFL, Jump Crypto, Jump Trading, Republic Capital, Definition Capital, GSR Markets, Three Arrows Capital, Nicholas Platias and Do Kwon are also named in the lawsuit. Patterson and a group of plaintiffs accused the defendants of “repeatedly touting the stability of the UST.”

Additionally, the lawsuit claims that Terra-based tokens are unregistered securities. “Terra tokens are securities that TFL failed to register prior to the sale,” the plaintiffs’ attorneys insist.The lawsuit came to light on June 18, 2022, whistleblower Fatman tweet Regarding cases brought in California. The lawsuit explained that investors were told UST and Anchor were stable.

Court documents quoted Nicholas Platias, author of Anchor’s white paper, as saying Anchor’s interest rates are “stable” and that the decentralized finance (defi) protocol offers “low volatility yields” and “reliable rates of return.” “TFL and Luna Foundation Guard misled U.S. investors about the stability of UST and LUNA and the sustainability of Anchor,” the plaintiffs’ defense stated.

The plaintiff also cited a tweet from the official Anchor Protocol Twitter account on March 17, 2021, in which Say:

Anchor is not your ordinary money market. The protocol offers depositors a stable 20% APY interest and only accepts liquid staking derivatives as collateral for borrowers.

Three Arrows co-founder accused of telling people to take bitcoin as collateral and deposit proceeds in Anchor

Lawsuits against TFL and hedge fund group are the latest litigation Against Binance US, the company was accused of selling unregistered securities and promoting terrausd (UST) as “safe.” Another lawsuit has been filed against Coinbase over the impact of UST as plaintiffs accuse Coinbase of passing off UST as “just another stablecoin.” The lawsuit was brought by Erickson Kramer Osborne and law firm Milberg Coleman Bryson Phillips Grossman LLP.

In addition to TFL, Nicholas Platias, Do Kwon, Jump Crypto, Jump Trading, Republic Capital, Definition Capital and GSR Markets, Three Arrows Capital (3AC) co-founder Su Zhu is accused of telling people to use their bitcoin loans to use the proceeds for Anchor. “Seven days later, following the collapse of UST, the article was removed immediately,” the lawsuit against TFL details. Allegedly 3AC facing financial difficulties Members of the crypto community have reportedly accused crypto hedge funds of being insolvent.

tags in this story

3AC, and Jinsha River Market, Binance, California, class action, class action, Coinbase, financial capital, go to nails, do right, Jump encryption, jump deal, Luna, Nicholas Platias, Republic Capital., the earth, Terrain Lab, tera dollar, TFL, head of three arrows, American University of Science and Technology, UST decoupling, whistleblower fatman

What do you think of the class action lawsuit against TFL? Let us know what you think about this topic in the comments section below.

Jamie Redman

Jamie Redman is Head of News for News and a fintech reporter based in Florida. Redman has been an active member of the cryptocurrency community since 2011. He is passionate about Bitcoin, open source code and decentralized applications. Since September 2015, Redman has written over 5,000 articles for News on the disruptive protocols emerging today.

Image Source: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for reference only. It is not a direct offer or an invitation to buy or sell, nor is it a recommendation or endorsement of any product, service or company. Bitcoin Network Does not provide investment, tax, legal or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused or related to the use of or reliance on any content, goods or services mentioned herein.

Source link