Albright Capital drops lawsuit against Terraform Labs and Do Kwon

Albright Capital has dropped its suit against Terraform Labs and its laminitis Do Kwon, according to a Notice of Voluntary Dismissal filed successful U.S. District Court connected January 9. Before its dismissal, the suit had alleged that the institution had violated the Racketeer Influenced and Corrupt Organizations Act (“RICO”) by operating the stablecoin, UST, arsenic a “Ponzi scheme.”

Three Arrows Capital (3AC) Co-Founder Su Zhu posted the dismissal to Twitter, saying:

Curious however agelong it volition instrumentality cryptonative media to study connected this abrupt voluntary dismissal of people enactment against Luna instauration and Luna investors pic.twitter.com/8SyMhB4u4g

— Zhu Su (@zhusu) January 10, 2023

Su Zhu had antecedently claimed that the bankruptcy of 3AC was partially caused by UST’s collapse. The suit was dismissed “without prejudice,” meaning that the plaintiff has the enactment to refile it successful the aboriginal if desired.

Related: Terra accidentally airdropped tokens to the incorrect person

US Dollar Terra (UST) was an algorithmic stablecoin created by Terraform labs. It ran connected the Terra network, whose autochthonal coin was LUNA. UST was backed by an equivalent dollar magnitude of LUNA arsenic collateral, and each UST coin was expected to beryllium pegged to $1 connected the secondary market. However, LUNA collapsed successful value successful May, 2022, causing UST to go undercollateralized. UST mislaid its peg arsenic a effect and is present worthy lone $0.02 per coin.

South Korean authorities issued an apprehension warrant for Terra network’s laminitis Do Kwon successful September, and the institution has faced aggregate lawsuits alleging that UST was a fraud. This peculiar suit alleged that UST “amounted to a Ponzi strategy that was lone sustained by the request for UST created by Anchor’s excessive yields.” However, the suit has present been dismissed by the plaintiff.