On January 15, 2024, the U.S. Securities and Exchange Commission decided to delay the trial of Do Kwon and his company Terraform Labs in the case involving the crash of the Terra Luna (now Luna Classic – LUNC).
According to a filing made at the federal court in Manhattan, the SEC is pushing the court case date to mid-April.
As per Reuters, the trial scheduled for January 29, 2024, required Kwon to be extradited from Montenegro to attend.
However, based on statements from Do’s attorney, Do is willing to attend the trial and has even agreed to the extradition. Do Kwon could be in the U.S. by the middle of March 2024.
The SEC is also requesting U.S. District Judge Jed Rakoff to make the rule the trial of Terraform Labs and Do Kwon as one instead of separating them. It remains to be seen who between the SEC and Kwon’s lawyer the judge will favor. Either way, the trial can be between March 18, 2024, and April 15, 2024.
Do Kwon’s woes began when the vulnerability in his TerraUSD stablecoin was exploited and subsequently led to its collapse. TerraUSD (USTC) was designed to constantly remain at $1.00, even though there was no 1:1 backing of physical dollars.
Following the collapse, information that Kwon may have lied to his investors about the stability of USTC emerged.
Judge Rakoff has already found Terraform Labs guilty of operating in the United States without proper registration and licenses. The subsequent trial that Do Kwon is facing now pertains to financial crimes.
Do Kwon hails from South Korea, and his government is also seeking custody for him to face trial there.
LUNC Volume is Up 66% in the Past 24 hours, Community Prepares for Second Attempt at 1.5% tax proposal
LUNC volume grew 66% on January 16, 2024, signifying growing interest from investors. The current LUNC chart shows a falling channel, which is usually a bullish indicator. The increase in volume and price shows that many investors are anticipating LUNC to break out of the channel soon.
The last 1.5% on-chain tax vote that ended three weeks ago flopped despite getting support from the LUNC community. Some large validators gave feedback to wait for the tax-to-gas implementation.
If the proposal had passed, it would have caused a LUNC price rise.
The pro-taxers are not done yet. For the massive burning of the supply of both LUNC and USTC, the on-chain tax needs to be raised to 1.5% and the 1.2% burn tax off-chain on exchanges needs to be accepted.
However, the tax-to-gas module has to be implemented (it already passed governance) before trying again with the 1.5% on-chain tax parameter change.
The community will wait until then before bringing the 1.5% tax proposal for a second attempt.