In a courtroom showdown between the U.S. Securities and Exchange Commission and Terraform Labs and its founder Do Kwon in absentia, presiding Judge Rakoff rebuked both sides for arguing off-topic.
Let’s take a look at the preliminary instructions to the jury on key aspects of the fraud lawsuit –
Judge Rakoff initiated the jury trial by briefly summarising the SEC’s allegations against Terraform Labs and Do Kwon, setting the stage for the trial proceedings. The SEC accuses Terraform Labs and Kwon of violating federal securities laws by orchestrating two fraudulent schemes related to Terraform securities, including LUNA and UST (now USTC) coins.
According to the SEC, Terraform has misled investors by falsely claiming that Chai Corp, linked to Terra’s co-founder, utilized TFL technology for its operations. Additionally, the SEC alleges that Terraform misrepresented the stability of UST stablecoin, assuring investors that its value would always peg to $1.00, linked to the U.S. dollar.
The trial commenced with Terraform Labs defending against allegations of civil fraud which led to the collapse of TerraUSD stablecoin in 2022.
Meanwhile, the co-founder of Terraform Inc., Do Kwon, although is the co-defendant in the lawsuit, is physically absent from the trial, as he is awaiting extradition decisions in Montenegro under house arrest.
Now.. as the tiral is only beginning and setting it’s ground, many people have been wondering what can be its probable effect on the Terra Lab’s own tokens? Let’s take a look at –
Recent upgrades to Terra Luna Classic, including version 2.4.2 with IBC-Hooks, have propelled LUNA token prices to reach its 7-day highest at $ 1.182606 per (LUNA / USD).
Over 105 billion LUNC tokens have been burned, notably by Binance, potentially increasing scarcity and value. However, a slight slowdown in token burning coincides with rising prices.
Despite this, growing demand which is visible by increasing LUNC wallet holders, we believe there is high optimism for LUNC’s future.
Presently, LUNC is priced at $0.000161, with a market capitalization of $939.80 million and a circulating supply of 5.83 trillion LUNC. The Fear & Greed Index registers 83, indicating extreme greed.
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