$40 Billion Crypto Crash: Terraform Labs Founder May Plead Guilty
Do Kwon, the creator of Terraform Labs, may enter a guilty plea in a U.S. criminal case related to the $40 billion Terra ecosystem collapse in 2022, according to a Bloomberg story published on August 11 that cited persons with knowledge of the situation. In a well-known legal dispute that has affected the Terra and Terra Luna Classic tokens for more than two years, the action would represent a significant turning point. Although the details have not been finalized, sources told Bloomberg that Kwon’s defense team and U.S. prosecutors are in talks about a potential plea agreement. Kwon has been in the United States since his extradition from Montenegro, where he was arrested in March 2023 on suspicion of using falsified travel documents.
Terraform Labs Bankruptcy Fails to Ease Regulatory and Legal Scrutiny
Terraform Labs has denied any wrongdoing and declared bankruptcy in January. But as South Korean and American officials pursue parallel criminal cases, the legal pressure on Kwon has increased. While a potential plea agreement would expedite proceedings in the United States, it would not necessarily resolve allegations overseas. Both LUNA and LUNC are trading near significant technical levels, and investor confidence has been dampened as a result of ongoing legal and regulatory barriers.
How Are Ongoing Legal Battles Affecting LUNA and LUNC Prices?
LUNA is currently trading at $0.1602, down below the upper Bollinger Band resistance of $0.1761, but slightly above the 20-day moving average of $0.1612. With a relative strength rating of 44.75, neutral momentum is indicated. The price has been steadily rising between $0.148 and $0.169 over the last seven days. Over the previous day, open interest has dropped 6.16%, despite a 39.50% increase in trading volume, suggesting that leveraged traders are still exercising caution.
On the other hand, at $0.00006116, LUNC is trading near its 20-day moving average of $0.00006060 and slightly below the upper Bollinger Band resistance at $0.00006464. RSI 46.37 indicates a moderate recovery from an oversold condition. While open interest decreased 3.62%, trading volume increased 3.20% and derivatives volume increased 17.18%. The price could break above $0.00006417 and hit $0.00007000.
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