- Terraform Labs and Do Kwon settle fraud charges with the SEC; filings due by June 12.
- LUNA’s market price surged 20% post-settlement, reflecting renewed investor confidence.
- Kwon’s extradition issues between the U.S. and South Korea remain unresolved.
Terraform Labs and its CEO, Do Kwon, have reached a tentative settlement with the U.S. Securities and Exchange Commission (SEC) over fraud charges.
This development follows a jury verdict in April that found Kwon and his company liable for misleading investors about their cryptocurrency offerings, especially the LUNA cryptocurrency and TerraUSD (UST) stablecoin.
The settlement agreement, reported by Reuters, suggests financial restrictions on Kwon’s future financial activities. Details remain confidential until the official filings are due by June 12. This settlement addresses some of the legal challenges faced by Kwon and Terraform Labs, though there are issues still left unresolved.
Kwon still faces charges from the U.S. Department of Justice (DOJ) and South Korean authorities for financial crimes. These ongoing legal battles have intensified scrutiny of Kwon’s operations since the collapse of his companies last year.
The settlement announcement boosted LUNA’s market price to surge 20%, indicating renewed investor confidence. This price increase reflects reduced investor anxiety around LUNA’s market position. The Terra Luna community anticipates further positive outcomes on the remainder of Kwon’s legal challenges, and their potential impact on Terraform Labs’ operations.
Despite the SEC settlement, Kwon’s extradition issues remain unresolved. He is involved in a legal struggle between the U.S. and South Korea, with both countries seeking to prosecute him after his arrest in Montenegro for possessing a fake passport.
The announcement of the SEC settlement also impacted the Terra ecosystem tokens, particularly LUNA Classic (LUNC) and TerraUSD Classic (USTC). Open interest in LUNC and USTC has surged by over 20% with LUNC’s price climbing 15% within hours before settling at a 9% gain in the last 24 hours.
Analysts forecast a 60% rally for LUNC, aiming to reach the $0.0002 level again, driven by increased trading volumes and heightened interest among traders.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
