LUNA Token Surges Over 15% as Do Kwon’s Terraform Labs Reaches Settlement with SEC Over $40 Billion Crypto Collapse
Terraform Labs and its founder Do Kwon have reached a preliminary settlement with the U.S. Securities and Exchange Commission (SEC) following accusations of fraud and misleading investors.Both LUNA and LUNC saw their prices jump over 15$ and 10% following the news, though these gains were momentary, they were significant for two defacto deadcoins. As per Reuters , Terraform Labs and Do Kwon have reached a “settlement in principle” with the SEC after the regulator charged the firm with defrauding investors in 2023. According to the SEC’s estimates, investors lost over $40 billion combined when the collapse of TerraUSD stablecoin’s $1 peg dropped, causing Luna (now Luna Classic) to also collapse with it.As per reports, SEC filings show that the regulator is seeking to reclaim $5.3 billion in TerraUSD proceeds from Kwon and Terraform labs. The SEC is also seeking to fine Terraform Labs $420 million, as well as a further $100 million for Kwon, who argue that they should only pay $3.5 million and less than $1 million, respectively.
Following the announcement, the Terra (LUNA ) token spiked some 38% from around $0.59 to just over $0.81, the highest price the token had reached since December 2023.
Traders were seemingly eager to offload their LUNA tokens at the $0.81 mark, bringing the price back down to around $0.68. Terraform Labs’ original token Terra Classic (LUNC), also saw similar price action. LUNC climbed some 12% peaking at just over $0.00013, the highest it’s been since October 2023. The price action appears to mirror that of LUNA, with LUNC now trading sideways after shedding around half of its gains.