News of Do Kwon's SEC Settlement lead to Surge in Terra Coins LUNA and LUNC!
Big news for the Terra community! Terra's cryptocurrencies, LUNA and LUNC, are on the rise after founder Do Kwon and Terraform Labs reached a tentative settlement with the SEC in their civil fraud case.
What's Happening?
- LUNA: Up 16.3% in the last 24 hours, now trading at $0.69.
- LUNC: Up 9.5% in the past day, trading at $0.0001215.
The spike comes after news broke that Terraform Labs and Do Kwon reached a tentative settlement with the U.S. Securities and Exchange Commission (SEC). This settlement was noted in court documents, with a June 12 deadline for finalizing the details.
In April, a New York jury found Kwon and Terraform Labs liable for civil fraud, agreeing with the SEC's claims that investors were misled about TerraUSD (UST), Terra’s stablecoin. The SEC aimed to impose financial penalties and bar Kwon and Terraform Labs from the securities industry.
The charges stem from the May 2022 collapse of TerraUSD and the LUNA governance token, which led to over $40 billion in losses and triggered a prolonged "crypto winter."
While this settlement is a step forward, Kwon's legal troubles are far from over:
- He still faces criminal fraud charges from the U.S. Department of Justice.
- In South Korea, he's charged with fraud, bribery, and market manipulation.
- After his December 2023 arrest in Montenegro for using a false passport, both the U.S. and South Korea are vying for his extradition.
Currently, Kwon is in Montenegro, where he served a four-month sentence and is awaiting further legal proceedings.
