Terra Classic price drops 10% as founder Do Kwon faces extradition to the US
- Terra Luna founder Do Kwon will be extradited to the US, where he will face criminal charges.
- Montenegro has privately said it is set to send Do Kwon to the US following March arrest.
- The former crypto executive was charged in February for orchestrating a multibillion-dollar crypto fraud.
- LUNC price has dropped 8%, while LUNA is down 5% in the aftermath of the news.
Terra Classic (LUNC) price, as well as that of Terra Luna (LUNA), continue to suffer the aftermath of legal troubles of the ecosystem’s founder, Do Kwon, following his arrest in Montenegro.
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Terra ecosystem founder Do Kwon faces extradition
Terra Luna founder Do Kwon will be extradited to the US despite efforts by his legal representatives to prevent the outcome. Specifically, the lawyers had appealed a decision made in late November that approved such a handover.
According to a report in The Wall Street Journal, a top Montenegrin justice official has privately verified the extradition plan of Kwon, with the fallen crypto executive facing criminal charges for manipulating the TerraUSD stablecoin. His unscrupulous leadership led to a $40 billion crash in the market, making prosecutors in both the United States and South Korea eager for a trial. The US Securities & Exchange Commission (SEC) charged him in February for “orchestrating a multibillion-dollar crypto asset securities fraud.”
Kwon was arrested in February in a Montenegrin airport attempting to flee the country using falsified documents. His confiscation commenced extradition discussions, with the US and South Korea both pushing for control in the arrest. Nevertheless, he has been in custody since March.
Terra Classic, Luna react to Kwon’s arrest
In the aftermath of the arrest, Terra Classic (LUNC) and Terra Luna (LUNA) prices have dipped 10% and 5%, respectively, with prospects for extended losses as momentum continues to fall. However, bulls continue to maintain a presence in the market, evidenced by the presence of large volumes of histogram bars on the Awesome Oscillator in positive territory.
LUNC/USDT 1-day chart, LUNA/USDT 1-day chart
At the time of writing, LUNC is trading for $0.00020566, while LUNA is selling for $1.0183.
Author
Lockridge Okoth
FXStreet
Lockridge is a believer in the transformative power of crypto and the blockchain industry.
