A preliminary settlement between the SEC and Terraform Labs has given the LUNA token a boost.
(Credit Derek Fenech: CCN.com)
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Key Takeaways
Terraform Labs has reached an interim settlement with the SEC.
The Terra (LUNA) and Luna Classic (LUNC) tokens have risen in price following the announcement.
Do Kwon remains in Montenegro and is awaiting extradition to South Korea or the U.S.
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.
Settlement Agreed?
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.
LUNA and LUNC Price
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.
(Source: TradingView)
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.
(Source: TradingView)
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.
Kwon on Bail
Kwon is presently on supervised release and stuck in extradition limbo, where he has been sent back and forth between jails, immigration camps, and properties around Montenegro. It is unclear whether or not Kwon will be extradited at all as a previous appeal by his lawyers was granted by the Court of Appeal in Montenegro.
Whilst the Montenegro High Court determines whether or not a century-old extradition policy is still applicable, Kwon continues to deny the allegations and awaits extradition to either the U.S. or South Korea.
Eddie is a gaming and crypto writer at CCN. Covering the often weird and wonderful world of Web3 with an adoring, but skeptical eye.
Prior to CCN, Eddie has spent the past seven years working his way through the crypto, finance, and technology industry. He began with PR and journalism with Bitcoin PR Buzz and BitcoinNews.com, eventually working his way to become a copywriter with a dozen firms, including the likes of Polkadot before returning to journalism in 2023.
Having studied Radio production and journalism at University in the UK, Eddie spent a few years making podcasts and presenting on a local London radio station as he built up his writing chops.
A lifelong skateboarder, Eddie can often be found at the skatepark or touring the streets looking for something new to try. That, or kicking back playing JRPGs on his original PSP.
