News
Terra Coins LUNA and LUNC Rise After Do Kwon SEC Deal
Cryptocurrencies tied to the Terra ecosystem made gains overnight following news that Terraform Labs and its founder Do Kwon achieved a provisional agreement with the US Securities and Exchange Commission (SEC).
Terra’s rebooted LUNA cryptocurrency is up 16.3% in the last 24 hours to trade at $0.69, while Terra Luna Classic (LUNC), the native token of the original Terra ecosystem, is up 9.5% over the past day. trading at US$0.0001215.
Per court minutes In this case, the parties involved in the case “informed the Court that they had reached an agreement in principle”, with a deadline of June 12th to present documents relating to the matter. The detail appears in the judicial summary because a hearing scheduled for May 29 was canceled due to ongoing settlement negotiations.
In April, a New York jury found that Do Kwon and Terraform Labs were responsible on civil fraud charges, agreeing with the SEC that investors were misled about the stability of the Terra ecosystem’s TerraUSD (UST) algorithmic stablecoin.
While details of the tentative agreement reached between the parties were not disclosed, the SEC sought civil financial sanctions as well as orders to debar Kwon and Terraform Labs from the securities industry.
The charges relating to the collapse of TerraUSD and Terra’s LUNA governance token in May 2022, which caused more than $40 billion in losses and triggered a years-long “crypto winter.”
Kwon’s legal problems were only partially resolved by the settlement. Terra’s founder faces criminal fraud charges brought by the U.S. Department of Justice (DOJ), as well as charges of fraud, bribery, transaction volume manipulation and violation of capital markets laws in his native South Korea .
After Kwon’s arrest in Montenegro on false passport charges in December 2023The US and South Korea have been engaged in a months-long jurisdictional battle to extradite Earth’s founder, with requests repeatedly being made. approved It is rejected by the courts of Montenegro.
Kwon, who was released from prison in Montenegro, after serving a four-month sentence, he is obliged to remain in the country pending his extradition.
Edited by Stacy Elliott.