.Exciting news for the Terra community! One click to claim your BNB reward 🎁 The values of Terra's digital currencies, LUNA and LUNC, have surged following a possible settlement between founder Do Kwon and Terraform Labs with the SEC regarding a civil fraud case.
What's Going On?
- LUNA: Increased by 16.3% in the last day, now priced at $0.69.
- LUNC: Rose by 9.5% in the past 24 hours, currently trading at $0.0001215.
The jump in prices came after reports emerged of a potential agreement between Terraform Labs, Do Kwon, and the U.S. Securities and Exchange Commission (SEC). The settlement details are expected to be finalized by June 12, as stated in court documents.
In April, a jury in New York found Kwon and Terraform Labs responsible for civil fraud, supporting the SEC's allegations of misleading investors about TerraUSD (UST), Terra's stablecoin. The SEC sought financial penalties and restrictions on Kwon and Terraform Labs in the securities industry.
These charges stem from the collapse of TerraUSD and the LUNA governance token in May 2022, causing over $40 billion in losses and initiating a prolonged downturn in the cryptocurrency.
While this settlement indicates progress, Kwon still faces legal challenges:
- He is confronted with criminal fraud charges from the U.S. Department of Justice.
- Following his arrest in Montenegro in December 2023 for using a fake passport, both the U.S. and South Korea are seeking his extradition. where he served a four-month sentence and awaits further legal proceedings.
