LUNC price in recovery mode after opening statements from SEC and Do Kwon’s defense team
- SEC’s securities fraud trial for Do Kwon and Terraform Labs is expected to last two weeks.
- Opening statements from both sides took place on Monday, marking clear indications of how each side will present their evidence.
- Both LUNC and LUNA price are in recovery mode.
As broader markets awaken on Monday, Terra Classic (LUNC) and Terra Luna (LUNA) prices have not been left behind. The two altcoins, sprouting from the Terraform Labs ecosystem, are also showing some strength, coming on the same day as Terraform Labs executive Do Kwon’s trial with the US Securities & Exchange Commission (SEC) commences.
Also Read: LUNC price crash could extend 30% amid oncoming hearing between Terraform Labs and the SEC
SEC vs. Do Kwon trial
The SEC versus Do Kwon trial kicked off on Monday in a Manhattan federal court, but the accused did not appear and was represented by his defense team. Along with the opening statement, the March 25 gathering also marked jury selection.
Do Kwon is accused of the epic collapse of Terraform Labs’ TerraUSD “stablecoin” in May 2022, which set the wheel rolling for what culminated in a loss of over $40 billion across the market. Echoing the weight of the matter, Director of the SEC’s Division of Enforcement, Gurbir S. Grewal, detailed the fundamental flaws of the Terraform ecosystem, citing a lack of “decentralization and financial integrity.”
Further, Grewal underscored how the establishment was a breeding ground for fraud, describing it as a scheme supported by a purportedly algorithmic “stablecoin” despite its price being influenced by Do Kwon and the company as opposed to pre-existing code.
According to reports from CoinGecko News, that judge had also sought to know the whereabouts of the accused and was told of Do Kwon’s detention in Montenegro.
DO KWON PLACED IN "RECEPTION CENTER" IN MONTENEGRO AFTER PRISON RELEASE
— Mario Nawfal’s Roundtable (@RoundtableSpace) March 25, 2024
Kwon was reportedly interrogated by a local inspector for five hours before being moved to the camp. He is expected to remain guarded in the facility until the local court makes a new decision on his… pic.twitter.com/c921NzFrMl
Read why Do Kwon is still in Montenegro here: Do Kwon to be released on house arrest, extradition process halted as prosecutor cites ‘procedural errors’
Do Kwon 2.0 ✋#LUNC #LUNA pic.twitter.com/hCzAR2d152
— Terra Haber Portalı (@TerraHaberTr) March 23, 2024
Meanwhile, both LUNC and LUNA prices are in recovery mode. Terra Classic price is up 3%, while Terra Luna price is up around 2%. Both altcoins are still in the woods, however, as the trial is only beginning. With the trial expected to last two weeks, community members should brace for volatility.
LUNC/USDT 1-day chart, LUNA/USDT 1-day chart
Author
Lockridge Okoth
FXStreet
Lockridge is a believer in the transformative power of crypto and the blockchain industry.
