Massive Selloff In Terra (LUNA), Terra Classic2 min read
The prices of Terra (LUNA) and Terra Classic (LUNC) experienced a sudden drop following the Securities and Exchange Commission’s (SEC) lawsuit against Do Kwon, Terraform Labs, and related parties. This suggests that Do Kwon still has an influence over LUNA and LUNC.
Within a few hours of the news of the SEC lawsuit against Do Kwon spreading within the community, LUNA’s price fell from $2.01 to $1.80. However, LUNA’s price failed to recover and is currently trading at $1.89, under selling pressure. The trading volume has also decreased by 35% in the last 24 hours, indicating a decline in traders’ interest.
It is worth noting that Terra Classic (LUNC) also experienced a similar price drop. Although Terra founder Do Kwon and the Terra Classic community had previously claimed that the Terra Classic community and developers are separate from Terra, it seems that Do Kwon still has an impact on Terra Classic.
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LUNC price fell from $0.0001757 to $0.0001655 on February 17th. It is currently trading at $0.0001707, which is a 1% increase, but still below the previous price. The 24-hour low and high are $0.0001671 and $0.0001728, respectively, and the trading volume has decreased by 25% in the last 24 hours, indicating a decrease in interest among traders. As a result, a significant selloff in both tokens is expected as a result of the lawsuit against Do Kwon and affiliates.
Terra LUNA Founder Do Kwon Faces Lawsuit by U.S. SEC
Terraform Labs and its co-founder, Do Kwon, have been sued by the U.S. Securities and Exchange Commission (SEC) for allegedly orchestrating a securities fraud worth $40 billion involving LUNA and Terra’s algorithmic stablecoin TerraUSD (UST).
The SEC further claims that Do Kwon and his company secretly transferred more than 10,000 BTC out of the company and converted some tokens into cash through a Swiss bank. It is alleged that Do Kwon has withdrawn over $100 million in fiat currency from the same Swiss bank after the Terra-LUNA crisis.