Terra (LUNA) and Terra Classic (LUNC) prices may plummet due to the U.S. lawsuit against Terra creator Do Kwon.
Terra Classic (LUNC) dropped simultaneously. Terra's inventor, Do Kwon, and Terra Classic's developers have claimed independence from Terra.
Which might cause the prices of Terra (LUNA) and Terra Classic (LUNC) to drastically drop.
As the Securities and Exchange Commission (SEC) on Friday filed a complaint against Do Kwon, Terraform Laboratories, and affiliates, prices for Terra (LUNA) and Terra Classic (LUNC) dropped abruptly. It suggests that Do Kwon still controls both LUNA and LUNC.
Within hours of the community being informed about the U.S. SEC complaint against Do Kwon, the price of Terra (LUNA) dropped from $2.012 to $1.805. The price of LUNA has so far been unable to gain upward momentum after it. At $1.89, the price is currently seeing selloff pressure. The last 24 hours have seen a 42% decline in trading volume, which suggests that traders are becoming less interested.
It's interesting to note that Terra Classic's (LUNC) price decreased concurrently. Do Kwon, the creator of Terra, and the developers of Terra Classic have previously asserted their independence from Terra. It appears like Do Kwon still has an effect on Terra Classic, though.
On February 18, the price of LUNC dropped from $0.00017499 to $0.0001684. Price is currently at $0.00017202, up 1% from the previous price but still down from that level. In addition, the trading volume has dropped by 25% during the past 24 hours, suggesting that traders are becoming less interested. Thus, amid the legal action against Do Kwon and affiliates, a major selloff in both tokens is anticipated.
Due to their involvement in a $40 billion securities fraud involving LUNA and Terraform Labs' algorithmic stablecoin TerraUSD, the U.S. Securities and Exchange Commission (SEC) has launched a complaint against them (UST).
Additionally, according to the SEC, Do Kwon and his business secretly moved over 10,000 BTC out of the business and turned some tokens into cash by using a Swiss bank. Following the Terra-LUNA crisis, Do Kwon withdrew more than $100 million in fiat money from a Swiss bank.