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Terra and Celsius Face A Series Of Lawsuits In The US

It seems the trouble with Terra and Celsius is still going on as the legal cases are increasing.

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A new class action lawsuit against TerraForm Labs and CEO Do Kwon was filed by Bragar Eagel & Squire, P.C. on July 24 in the state of California.

Bragar Eagel & Squire, P.C. also launched a class-action lawsuit against Celsius Network, Alexander Mashinksy, other companies, and individuals associated with the crypto lending company on July 24 in the state of New Jersey.

The lawsuit was filed on behalf of an investor who purchased Terra tokens such as UST, LUNA, MIR, and others between May 20, 2021, and May 25, 2022.

Terraform is accused of deceiving investors

According to the complaint, Terraform Labs and other defendants violated the Transactions Act by intentionally misleading investors into purchasing Terra tokens at inflated prices and using false statements to solicit investors’ gullibility.

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The lawsuit also asserts that Terraform Labs violated the Securities Act by not registering Terra tokens as securities. In addition, all defendants violated the RICO Act by conducting business operations through a fraudulent model.

Other defendants in the case include the bankrupt hedge fund Three Arrows Capital, venture capital firm Jump Crypto, Nicholas Platias, and other businesses associated with Terra.

Terra faces two lawsuits

Meanwhile, a similar lawsuit was filed by Nick Patterson against Terra on July 17.

Patterson alleges Terra’s tokens are securities, and Terraform Labs fails to maintain the ecosystem to the detriment of retail investors.

Patterson wants the court to declare Terra’s tokens security and that investors should be entitled to “punishment, consequential damages and compensation” from the defendants. Two lawsuits against Terra have been filed in the Northern District of California.

The Celsius lawsuit

Bragar Eagel filed the lawsuit on behalf of investors who purchased Celsius securities between February 9, 2018, and July 13, 2022.

Like the Terra case, the lawsuit alleges Celsius and other defendants violated the Exchange Act by tricking investors into buying Celsius financial products at high prices through false statements.

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According to the statement, Celsius violated the Securities Act by selling unregistered “non-exempt securities.” Celsius Network filed for Chapter 11 bankruptcy on July 14. The case was filed in the New Jersey District Court.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Harold

CoinCu News

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.