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Elena R
Elena R
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Elena is an expert in technical analysis and risk management in cryptocurrency market. She has 10+year experience in writing - accordingly she is avid journalists with a passion towards researching new insights coming into crypto erena.
- May 31, 2024 04:38 UTC
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Terraform, Do Kwon Settle SEC Fraud Case: LUNA Price Surges on Relief
Terraform Labs and Do Kwon reached a settlement with the SEC over fraud charges related to the 2022 ecosystem collapse.
The LUNA token surged significantly after the settlement announcement, reflecting investor optimism.
While the SEC case is settled, Do Kwon still faces extradition and potential criminal charges.
Crypto shocker! Terraform Labs and its co-founder, Do Kwon, have reached a “settlement in principle” with the U.S. Securities and Exchange Commission (SEC) in a civil fraud case. This development comes after the SEC accused Terraform and Kwon of misleading investors about the stability of their products, leading to the $40 billion collapse of their ecosystem in May 2022.
This news has sent shockwaves through the crypto world, raising a multitude of questions: Will the settlement bring closure finally? What does it mean for Do Kwon’s future? And will the LUNA token continue to do well?
Read on for the full story.
Settlement Agreement Finalized
A recent court filing revealed that during a conference on May 29, all parties agreed to settle the case. This agreement led to the cancellation of previously scheduled oral arguments. The settlement documents are expected to be filed by June 12 and will be presented to Judge Jed S. Rakoff.
Market Reacts
The settlement news had a significant impact on the market, especially on Terraform’s LUNA token, which surged by up to 38%, the highest increase since April 12. This rise in LUNA’s value reflects investor optimism following the settlement announcement.
Resolving the legal uncertainties has brought a temporary sense of relief and optimism among stakeholders and investors.
Do Kwon’s Legal Troubles Continue
Despite the progress in settling the civil case with the SEC, Do Kwon’s legal troubles are not over. He is currently out on bail in Montenegro, awaiting extradition to either the U.S. or South Korea, where he faces additional criminal charges. The SEC had initially proposed a hefty $5.3 billion penalty to resolve the fraud case, which would be the largest fine ever imposed on a crypto project.
Amid bankruptcy proceedings, Terraform Labs has contested the proposed penalty, arguing for a more appropriate civil fine given its remaining assets amount to approximately $150 million.
Also Check Out: Donald Trump Convicted: Meme Coins Plummet Amidst Political Turmoil
Do Kwon’s future: Extradition, trial, or a different fate? The crypto world awaits.
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