Albright Capital has already withdrawn its lawsuit against Terraform Labs and its founder du Quan, based on a notice of self-dismissal filed in the United States District Court on Jan. 9. Prior to his dismissal, the lawsuit accused the company of violating "Racketeer Influence and Corrupt Organizes Act" (commonly known as RICO) and running Stablecoin, based in Colorado, as a "Ponzi scheme".

Su Zhu, founder of Three Arrow Capital,3AC, posted the dismissal on Twitter, saying:

Zhu previously claimed that the collapse of 3AC was caused in part by the bankruptcy of iFLYTEK. But the lawsuit was dismissed, which means that the appellant can choose to refer to the lawsuit again in the near future if he so wishes.

In an announcement for Cointelegraph, a spokesman for Terraform Labs took a winning tone on the dismissal, saying:

In another Terraform Labs victory, the appellant in Albright v. Terraform Labs dismissed the case after confirming that he was unhurt. From the moment the Terra ecosystem was hurt and linked to the Institute of Science and Technology, TFL has been saying that its enterprise and standards have done nothing wrong […] In the past few months, it has already been confirmed that objective facts will stand on our side, and more objective facts have been and will continue to be exposed.

Terra (UST) is a stationary region of optimization algorithm established by Terraform laboratory. He operates on the Internet at Terra, whose original currency is Luna. IFLYTEK has received strong support from Luna, the equivalent of US dollars, as collateral, and each coin of iFLYTEK should have been pegged to US $1 in the secondary market. But Luna's value plummeted in May, leaving iFLYTEK with insufficient collateral. As a result, HKUST has lost its peg to the dollar, and each coin is now worth only $0.02.

The South Korean government issued an arrest warrant for Prime Minister Power in September, and the company has already faced several lawsuits accusing iFLYTEK of being a fraudulent company. The special lawsuit claims that iFLYTEK "is tantamount to a Ponzi scheme and can only be sustained by the excessive return of Anchor to create a need for iFLYTEK." However, the lawsuit has been dismissed by the appellant.