A group of investors behind a class action lawsuit against Terraform Labs and its co-founder Do Kwon over alleged fraud has dropped the case.
In a Sept. 28 filing in the United States District Court for the Northern District of California, attorneys representing plaintiff Nick Patterson, who filed the suit on behalf of investors, filed a notice of voluntary dismissal against Terraform and Kwon only.
The notice did not explicitly state the reasons for dismissing the case without prejudice.
âThe defendant (Terraform Labs) has not responded to the complaint or filed a motion for summary judgment. "Because the Court has not certified the proposed class for any purpose in this case and this dismissal is without prejudice, it will not be binding on members of the proposed class."
Patterson's legal team filed suit in June 2022 following the collapse of Terraform Labs, which many attribute to the start of a major crypto market crash. Kwon and his company have been targeted by many global authorities for their role in an alleged scheme aimed at defrauding crypto investors.
In February, the US Securities and Exchange Commission (SEC) filed a civil lawsuit against Kwon and Terra for allegedly orchestrating a multibillion-dollar crypto asset securities fraud.
Authorities in Montenegro arrested Kwon in March and later sentenced him to 4 months in prison for using fake travel documents. At press time, it was unclear whether he would be released in Montenegro or face extradition to the US or South Korea.
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