NAIROBI (CoinChapter.com) – Terraform Labs has reportedly decided to settle its fraud charges with the SEC, leading to a significant surge in the price of LUNA, Terraform Labs’ native token. This tentative agreement comes in the wake of accusations that the company misled investors, ultimately leading to the collapse of TerraUSD in 2022. James “MetaLawMan” Murphy, a prominent cryptocurrency advocate, views this settlement as a positive development.
LUNA Surges Amid Legal Developments
As of June 5th, LUNA is trading at $0.6499, with a market capitalization of $446 million and a fully diluted valuation of $700 million. The cryptocurrency has seen significant trading activity, with a 24-hour trading volume of $40 million. Currently, there are 687 million LUNA tokens in circulation out of a total supply of 1 billion.
Following the news of Terraform Labs’ decision to settle, LUNA saw a remarkable 80% price increase over one week. This development has brought renewed optimism to the Terra community. The legal issues surrounding Do Kwon and Terraform Labs have cast a long shadow over the ecosystem. TerraUSD’s collapse in 2022 resulted in over $40 billion in investor losses. However, the reported settlement has injected fresh hope into the community, leading to a bullish rally.
MetaLawMan highlights the importance of this settlement, suggesting that it may pave the way for the Ripple or Coinbase cases to reach the 2nd Circuit Court of Appeals. This could be crucial in determining the legal status of crypto assets. The LUNA community’s reaction reflects the potential regulatory gains for the broader crypto industry.
TerraUSD’s Collapse and Legal Ramifications
The 2022 collapse of TerraUSD marked a significant downturn in the cryptocurrency market. The SEC accused Do Kwon and Terraform Labs of misleading investors, leading to massive financial losses. The proposed settlement signifies a crucial step toward resolving these allegations. It also underscores the ongoing regulatory challenges facing the crypto industry.
The settlement news has had a positive impact on LUNA’s price. TradingView data shows that LUNA traded at $0.0067 at the time of writing, with a strong bullish momentum. This surge reflects the community’s optimism about the settlement’s potential implications for the Terra ecosystem.
