The founders of the Luna cryptocurrency token are being sued

A lawsuit has been filed against Terraform Labs and a number of venture capital corporations for investing in a failed stablecoin and promoting it. Terraform Labs, Tribe Capital, and Republic Capital will act as defendants.

The plaintiff in the case is Nick Patterson, a resident of Illinois. He accused Terraform Labs of intentionally misleading investors. In particular, the company advertised the TerraUSD stablecoin as an extremely reliable asset, with high profits guaranteed.

The lawsuit states that inexperienced investors believed these implausible claims, which resulted in billions of dollars in losses.

It should be noted that the US Securities and Exchange Commission recently initiated an investigation into Terraform Labs. Its results will help determine whether TerraUSD and Terra (LUNA) can be classified as unregistered securities.