Crypto News

US SEC v. Do Kwon: Massive Selloff Coming In Terra (LUNA), Terra Classic (LUNC)?

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Terra (LUNA) and Terra Classic (LUNC) prices witnessed a sudden fall after the Securities and Exchange Commission (SEC) on Friday filed a lawsuit against Do Kwon, Terraform Labs, and affiliates. It indicates that Do Kwon still has influence over LUNA, as well as LUNC.

Terra (LUNA) price fell from $2.01 to $1.80 within hours after the news of the U.S. SEC lawsuit against Do Kwon reaches the community. LUNA price has so far failed to build upside momentum after it. The price is currently trading at $1.89, under a selloff pressure. The trading volume has plummeted 35% in the last 24 hours, indicating a decrease in interest among traders.

Interestingly, Terra Classic (LUNC) price also fell at the same time. Terra founder Do Kwon and the Terra Classic community have earlier claimed that the Terra Classic community and developers are separate from Terra. However, it looks like Do Kwon still has an impact on Terra Classic.

LUNC price slipped from $0.0001757 to $0.0001655 on Feb 17. The price is currently trading at $0.0001707, above 1% but still below the earlier price. The 24-hour low and high are $0.0001671 and $0.0001728, respectively. Furthermore, the trading volume has decreased by 25% in the last 24 hours, indicating a decrease in interest among traders. Thus, a massive selloff in both tokens looms amid the lawsuit against Do Kwon and affiliates.

U.S. SEC Lawsuit Against Terra LUNA Founder Do Kwon

The U.S. Securities and Exchange Commission (SEC) filed a lawsuit against Terraform Labs and its co-founder Do Kwon for plotting a $40 billion securities fraud involving LUNA and Terra’s algorithmic stablecoin TerraUSD (UST).

Moreover, the SEC alleges that Do Kwon and his company secretly transferred over 10,000 BTC out of the company and converted some tokens into cash via a Swiss bank. Do Kwon has withdrawn over $100 million in fiat currency from a Swiss bank after the Terra-LUNA crisis.

Also Read: Will Bitcoin Price Rally Above Key 200-WMA Level? Or It’s A “Bull Trap”

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Varinder Singh

Varinder has over 10 years of experience and is known as a seasoned leader for his involvement in the fintech sector. With over 5 years dedicated to blockchain, crypto, and Web3 developments, he has experienced two Bitcoin halving events making him key opinion leader in the space. At CoinGape Media, Varinder leads the editorial decisions, spearheading the news team to cover latest updates, markets trends and developments within the crypto industry. The company was recognized as Best Crypto Media Company 2024 for high impact and quality reporting. Being a Master of Technology degree holder, analytics thinker, technology enthusiast, Varinder has shared his knowledge of disruptive technologies in over 5000+ news, articles, and papers.

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