Albright Capital Reportedly Drops Lawsuit Against Terraform labs
By Nerly Shammah Jan 11, 2023
Albright Capital, in a letter publicly shared on twitter by three arrows capital co-founder Zhu Su drops class-action lawsuit against Terraform Labs in what appears to be a voluntary dismissal without prejudice and at no cost to the defendants.
Founded in 2018 by Do Kwon and Daniel Shin of Terraform Labs, on May 9, the Terra backed algorithm stablecoin USTC formarly UST lost its peg to the U.S Dollar falling from $1 a unit to $0.68. While the situation seemed temporary at that time and had not called for a fuzz, the inability of the cryptocurrency to regain its peg after hours caused an industry-wide panic.
Terra Luna, the native asset of the terra.money ecosystem, crashed from being worth about $87 as of May 5 to being currently worth $0.0001636 a unit with a widely expanded supply. Given the design of USTC which had a bonding relationship with LUNA, now identified as LUNC, the Terra ecosystem lost billions of dollars in a matter of days due to exploitation of the conversion functions which allowed 1 USTC to be converted to $1 worth of LUNC regardless of the price of USTC on the blockchain.
Following the event, numerous crypto assets and projects were pulled down, mostly those with great relationships with the Terra money ecosystem of which a notable example is 3AC, the three arrows capital whereas the CEO has been very vocal on how Terra has been responsible for the bankruptcy of his company following the loss of about $60 million.
That said, Terra Labs has faced numerous lawsuits since the crash of its crypto assets with Do Kwon, being reported by numerous sources to be in hiding. Albright Capital as many of the filing parties have suddenly without much disclosed reasons dropped the lawsuit against Terraform Labs.
3AC Urges The Media To React
As a result of the sudden dismissal of Albright Capital's lawsuit against Terraform Labs and Do Kwon, Zhu Su, the co-founder of 3AC brought to twitter in what seems be a request or curiosity on when the media will step in to uncover the real story behind the sudden withdrawal of filings by Albright Capital.
While the stage light seems to be brought back to Terra, it appears that the majority have grown weak on the topic ever since FTX took the stage with what appears to be the biggest rug-pull officiated by a centralized and supposedly regulated cryptocurrency exchange.
At the time of writing, there are little reactions to the event surrounding Albright's decisions, but given the once brought up debates on FTX's involvement in Terra's collapse, it appears, despite that Do Kwon is still being wanted by Interpol, the cryptocurrency ecosystem may be growing more friendly with the company with some having reasons to believe Terraform Labs had no involvement in the crash - the truth, however, remains to be uncovered.