Terraform Labs and Co-Founder Do Kwon Reach Settlement with SEC; LUNA Surges

Terraform Labs, along with its co-founder Do Kwon, has reached a “settlement in principle” with the U.S. Securities and Exchange Commission (SEC) in a high-profile civil fraud case. The SEC had previously accused the company and Kwon of misleading investors about the stability of their products, a factor that contributed to the collapse of their $40 billion ecosystem in May 2022. This significant development was confirmed during a court conference on May 29, resulting in the cancellation of scheduled oral arguments.

According to recent court documents, reported by Reuters, the involved parties have agreed to file the settlement documentation by June 12, with plans to present it before Judge Jed S. Rakoff. This resolution follows extensive legal wrangling and a period of stagnation for the company, marking a notable turning point in the ongoing case.

Following the announcement of the settlement, there has been a renewed interest in Terraform Labs’ cryptocurrency, LUNA. On May 30, 2024, investor confidence appeared to be bolstered by the news, leading to a noticeable uptick in LUNA’s market activity. CoinGecko data indicates that Terra’s price hovered around $0.67 during European business hours on Friday, representing an 11.5% increase in the past 24 hours and an 11.6% rise over the previous week.

However, as of this press, the price of Terra (LUNA) stands at $0.6832, with a 24-hour trading volume of $230,473,028.10. This marks a 15.47% price increase in the last 24 hours and a 15.40% rise over the past seven days. With a circulating supply of 690 million LUNA, Terra’s market cap is currently valued at $471,093,686.

In the broader context of the cryptocurrency market, Terra (LUNA) has been outperforming. Over the last seven days, while the global cryptocurrency market experienced a slight decline of 0.70%, LUNA showed robust growth. Additionally, it outperformed similar Alleged SEC Securities cryptocurrencies, which saw a decline of 4.60% in the same period.