Albright Capital Suddenly Dismisses Charges Against Do Kwon

According to a Notice of Voluntary Dismissal submitted in U.S. District Court on January 9, Albright Capital has withdrawn its case against Terraform Labs and its founder Do Kwon.

Before it was dismissed, the complaint claimed that Do Kwon and Terraform Labs had run the stablecoin, UST, like a “Ponzi scheme,” in violation of the Racketeer Influenced and Corrupt Organizations Act (“RICO”). 

Su Zhu, a co-founder of Three Arrows Capital (3AC), tweeted about the termination and stated:

;?”
|]>, mnbvnv “Curious how long it will take cryptonative media to report on this sudden voluntary dismissal of class action against Luna foundation and Luna investors.”

Zhu had earlier asserted that the failure of UST contributed to 3AC’s bankruptcy. The complaint was dismissed “without prejudice,” which gives the plaintiff the right to resubmit it in the future if chooses to do so. 

Collapse of UST under Do Kwon

It is noteworthy that the US Dollar Terra (UST), an algorithmic stablecoin, was created by Terraform Labs whose founder was Do Kwon. The Terra network, which featured LUNA as its native token, supported the stablecoin. 

Each UST coin was anticipated to be tied to one dollar on the secondary market, and it is thought that it was supported by the equivalent amount of LUNA as collateral. UST lost its peg when the value of LUNA dropped in May 2022, and each coin is now worth only $0.02. 

When the stablecoin TerraUSD and its companion cryptocurrency, LUNA, plummeted following the May crash, it distressed many investors and caused well-known cryptocurrency lenders Celsius and Voyager to go bankrupt.

Reportedly, Do Kwon, has a Red Notice issued against him by Interpol and is wanted for the highest possible level of arrest and extradition was hiding out in Serbia. 

Meanwhile, more than 350 investors who collectively lost more than $57 million as a result of Terraform Labs’ TerraUSD collapse commenced a lawsuit against Kwon in Singapore in October.