Investors in Terra have taken legal action against the company and its executives, accusing them of violating the Racketeer Influenced and Corrupt Organizations Act (RICO). The investors allege that Terraform Labs and its executives artificially inflated the value of its stablecoin TerraUSD (UST) and engaged in money laundering, leading to the collapse of the cryptocurrency. The lead plaintiff in the case also claimed that Terra's stablecoin was a "Ponzi scheme" and accused the company of misleading investors and selling unregistered securities. Terraform Labs has denied the allegations and intends to defend itself against the lawsuit.