Is LUNA Soaring due to Terraform Labs, Do Kwon Settling SEC Case?
Terraform Labs and its founder, Do Kwon, have reached a tentative settlement with the US Securities and Exchange Commission (SEC). According to court documents filed on Thursday, the Singapore-based crypto company and Kwon agreed to settle the fraud case on May 29.
This development follows a recent court ruling that found Do Kwon and Terraform Labs guilty.
Terra (LUNA) Token Surges 30%
The Terra (LUNA) and Terra Classic (LUNC) tokens saw significant price increases following the news. LUNA was the biggest gainer, with its value rising by more than 30%.
Open interest in LUNC and USTC also spiked after the settlement announcement, with LUNC poised for a 60% rally after already gaining 7%.
Tokens in the Terra ecosystem rallied by double digits after the settlement news, with LUNC and USTC prices jumping 15% within hours before settling at a 9% increase over the last 24 hours.
Analysts Predict Further Gains for LUNC
Analysts believe LUNC can hit the $0.0002 level, indicating a potential 60% increase from current prices. The token’s weekly charts already show a 7% upswing.
The tentative settlement with the SEC comes after an April jury verdict found Kwon and his company liable for deceiving investors out of nearly $40 billion. U.S. District Judge Jed Rakoff has asked the SEC and defendants to file papers supporting the settlement by June 12. The SEC aims to have Terraform Labs and Kwon relinquish $5.3 billion in ill-gotten gains from stablecoin sales, along with a $420 million fine for the company and a $100 million fine for Kwon.
Trading Volume Surges
The Terra (LUNA) price jumped 30% in an hour and is currently trading 16% higher at $0.70, supported by a 450% increase in trading volume over the last 24 hours.
LUNC and USTC prices also rallied due to the settlement. LUNC is trading 9% higher at $0.0001240, with a 24-hour high of $0.000131. Trading volume has increased by over 150% in the last 24 hours, indicating strong interest among traders.
Guilty Verdict in Fraud Case
The agreement to settle with the SEC comes about two months after the SEC’s civil fraud case against Terraform Labs and Do Kwon went to trial. In April, a jury in the US District Court for the Southern District of New York found them guilty of fraud related to the collapse of TerraUSD in 2022.
The SEC sought a $5.3 billion penalty, which Kwon and Terraform Labs criticized as excessive. Terraform Labs expressed disappointment with the verdict, maintaining that the SEC lacks the legal authority to bring the case and is considering its options.
Do Kwon, wanted in both the US and South Korea, remains in Montenegro where he was arrested in 2023. He is currently out on bail.
