Albright Capital Drops Fraud Charges Against Terraform Labs and Execs

• Investment firm Albright Capital has voluntarily dismissed its fraud charges against failed Terraform Labs and its executives including Do Kwon.
• Albright Capital in its lawsuit alleged that Terraform Labs had engaged in the deceptive promotion of the UST, Terra (LUNA), and related Terra cryptocurrencies.
• 3AC’s Zhu Shu appeared to have called the attention of crypto media outlets to the recent Albright and Terra lawsuit development.

The investment firm Albright Capital has decided to drop its lawsuit against the failed Terraform Labs and its executives, including Do Kwon. The lawsuit had accused Terraform Labs and its executives of deceptively promoting the UST, Luna, and related Terra cryptocurrencies.

Albright Capital, along with law firm Scott +Scott and Bragar Eagel & Squire, filed the class action lawsuit against Terraform Labs in the wake of its historic collapse in May 2022. In the lawsuit, the investment firm alleged that Terraform Labs was engaging in deceptive practices to promote its cryptocurrencies. Furthermore, the lawsuit accused the executives, including Do Kwon, of withdrawing funds from the Terra ecosystem for their own personal gains.

However, a motion filed recently has revealed that Albright Capital has decided to voluntarily dismiss the class action lawsuit against Terraform Labs and Do Kwon, without prejudice. The other defendants named in the dismissal motion include Luna Foundation Guard, Delphi Digital, Jump Trading, Nicholas Platias, Jose Macedo, Kanav Kariya, and Remi Tetot.

The news of the dismissal was brought to the attention of the crypto media outlets by Three Arrows Capital (3AC) co-founder Zhu Shu. On Jan 10, Shu tweeted “Curious how long it will take cryptonative media to report on this sudden voluntary dismissal of class action again.”

The dropping of the lawsuit is certainly good news for Terraform Labs and its executives, as it puts an end to all the accusations of fraud, deception, and personal gain. It also brings some closure to the Terraform collapse, which saw many investors losing their funds. While the case may be over, it is still important to be vigilant when investing in cryptocurrencies and to ensure that proper due diligence is done before investing.