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HomeCrypto NewsTerra Rebels at Risk of Litigation as LUNC Community Demands Refund of $150K

Terra Rebels at Risk of Litigation as LUNC Community Demands Refund of $150K

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Whistleblower PSX_TX exposed the risk in a legal assessment of the situation surrounding the previous allotment of $150K to the Terra Rebels group.

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An inactive anonymous member of the Terra Rebels group PSX_TX recently acted as a whistleblower, exposing activities bordering on the misappropriation of funds allotted to the group. PSX_TX also disclosed litigation risks group members face amid clamor from LUNC proponents for a refund of the funds.

PSX_TX hijacked the official Terra Rebels official Twitter handle yesterday to make an announcement on internal happenings within the group and disclose risks of litigation the members face due to the misappropriation of funds and miscommunication.

Recall that the Terra Rebels group previously introduced a proposal requesting the allotment of nearly $150K worth of Terra Classic (LUNC) to facilitate the independence of the Terra Rebels station from TFL infrastructure. With the proposal passed two weeks back, several proponents expressed concerns regarding the fund allotment, as previously reported.

Following the allotment, rumors of funds misappropriation surfaced, prompting community members to request a refund of the $150K. The recent exposé further intensified the situation on the Terra Rebels group by PSX_TX.

According to the legal assessment compiled by PSX_TX, the group is allegedly at risk of being charged with crimes bordering on communication fraud (false advertising), investor fraud, wire fraud & embezzlement, money laundering, and potential obstruction of justice.

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Regarding communication fraud, PSX_TX alleges that the group passed a separate proposal to supersede an already-existing one regarding the fund’s allotment without publicly informing community members of a planned fund redistribution.

On investor fraud, PSX_TX claims the FTC could charge the group based on funds misappropriation on the $12.5K distributed to its members, which notable member ReXx confirmed to have received. Notwithstanding, this charge would only hold substance if LUNC is considered a security.

Concerning wire fraud, the claims suggest that Terra Rebels wired funds across several U.S. states and other countries, with the funds not appropriated for the intended purpose disclosed to the public.

Calls for Refunds

Calls for a refund of the $150K have picked up, as documents suggest $12.5K was shared amongst 11 members, with $3.7K allotted to Zarader. Prominent LUNC influencer Crypto King demanded that the group cease all work on Rebel Station and refund the $150K. 

Top validator LUNCDAO revealed remarks by a former Terra Rebels attorney who alleged fraud was involved. The group members have also persistently blocked people who have made personal demands for refunds. Notwithstanding, an anonymous former member Venus recently became the first to return funds from the $150K allotment.

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Author

Ammara
Ammarahttps://thecryptobasic.com/
Ammara Mubin is a cryptocurrency reporter and trader with vast experience in the industry. Mubin has written several news stories related to the crypto industry, including non-fungible tokens (NFTs), decentralized finance (DeFi), fundraising, mining, etc. Her major focus is covering regulatory events that are capable of shaping the entire crypto ecosystem.

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