Open Now
Open Now
Watch now

FatManTerra announces the filing of a class action lawsuit against Terraform Labs, Do Kwon, and Jump Capital

FatMan Terra has announced a class action lawsuit in which Do Kwon is named as a defendant as he retells his story and explains why he created the FatManTerra account.

FatManTerra, the now-famous Dark Knight of Terra, has announced a class action lawsuit through US solicitors Scott+Scott in an attempt to recoup UST investments following the Terra ecosystem's collapse.

FatManTerra revealed in a Tuesday Twitter thread that he is working with the US law firm Scott+Scott to establish a class action lawsuit for the victims of the UST collapse. He has also revealed that cases in jurisdictions other than the United States are in the works.

On May 11, 2022, a new Twitter account was launched to promote a Terra governance proposal to "use UST peg reserves to refund smallholders in order to mitigate the crisis's most severe impacts." This account was to be the home of the alias FatManTerra.

According to FatMan's thread, "Vitalik, Binance, and Justin Sun" supported FatManTerra's proposal, which "involved a direct conversion to USDC and refund to UST holders using an FDIC-style cap."

Before an official proposal could be filed within Terra Station's official governance protocol, the Luna Foundation Guard announced that the Bitcoin reserves had been used to buy back Terra assets through OTC trades. FatMan said he was "heartbroken" to see a system he "truly believed in" collapse in this way, with the UST peg lost and reserves depleted completely.

FatMan recalled many parts of the Terra story he revealed over the last few months in the thread. He described how fake Chai volume was used to artificially inflate demand, Jump capital bailing out UST in 2021, Do Kwon siphoning funds to offshore accounts, and spoofed Anchor volume was used to create a "facade of stability."

FatManTerra concluded the thread by expressing sympathy for other investors, saying, "I can't convey their heartbreak in a tweet." He went on to say that he is "sick" of the crypto industry's scammers and that people like Do Kwon are making it "rotten." He concluded the thread with a challenge;

“We demand a fair trial to uncover all of TFL & Do Kwon’s wrongdoings and so that justice can take its course… One way or another, Do Kwon will either atone for his sins or face retribution”

The class action lawsuit is described in detail below.

** Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of USA GAG nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

Follow us on Google News

Filed under