LUNA sinks 20% after South Korea issues arrest warrant for Do Kwon Oluwapelumi Adejumo · 1 hour ago · 2 min read
Kwon’s arrest warrant is valid for one year and prosecutors are willing to try different tactics to bring to book.
2 min read
Updated: September 14, 2022 at 10:14 am
Cover art/illustration via CryptoSlate
Terra’s LUNA declined 20% on the news that South Korea has issued an arrest warrant for its founder Do Kwon.
#PeckShieldAlert $LUNA has dropped -20% https://t.co/rlzA0Miahb pic.twitter.com/z398HMOBgz
— PeckShieldAlert (@PeckShieldAlert) September 14, 2022
The token, which has enjoyed a new wave of interest that pushed its price up by over 80% in the last seven days, has seen its value drop by 21.4% in the previous 24 hours to $3.35, according to CryptoSlate data.
South Korea issues Kwon’s arrest warrant
Bloomberg News reported that a court in Seoul had issued a warrant for Kwon’s arrest and that of five others.
The report said South Korea’s prosecutor’s office confirmed the arrest warrant.
Local media Yonhap News said the arrest warrants were also issued for the founding members of Terraform Labs, Nicholas Platias, and the CEO of the affiliated Tchai Corporation, Han Mo.
The arrest warrant is valid for one year. The prosecutors are willing to try tactics like invalidating Kwon’s passport and collaborating with Interpol to bring him in.
Do Kwon presently lives in Singapore.
Since Terra’s implosion in May, several crypto community stakeholders have questioned why the authorities were yet to arrest Do Kwon for his role in the crash.
On Sept. 13, Yonhap reported that South Korean prosecutors investigated whether the crashed Terra tokens had security features.
Kwon has repeatedly maintained his innocence though he admitted that he might have made some mistakes. He also claimed that the prosecutors had yet to reach out to him.
In August, Kwon submitted an attorney appointment letter to prosecutors in South Korea in preparation for his defense.
Crypto community welcomes news
The crypto community has welcomed news of the arrest warrant, expressing much happiness about the development.
Conor Brandson said:
“I don’t think it’s a surprise that he’s being officially accused of a crime. It’s a surprise an arrest warrant didn’t happen sooner.”
FatMan Terra described the news as a “great day for Justice.”
Do Kwon, the man who brought so much horror and suffering to thousands of people across the world for his own enrichment, is now officially a wanted fugitive.
A great day for justice. And there are still a few more shoes left to drop. May the best man win.
— FatMan (@FatManTerra) September 14, 2022
This is incredibly bullish.
Arrest warrant out for Do Kwon w/ a Interpol red notice but I always said the bull market would not begin until he is behind bars. pic.twitter.com/MS6N9jzZzv
— McKenna (@Crypto_McKenna) September 14, 2022
Do Kwon destroyed more lives with $LUNA and $LUNC than Bitboy, The Moon Carl, MMcrypto, Ian Balina combined and multiplied by 100
Hopefully he serves a long sentence.
Karma always comes around. https://t.co/UeOWbIPEEc
— Mac 🐺 (@MacnBTC) September 14, 2022
A good start.https://t.co/YGXWJI2yUk
— Stephen Diehl (@smdiehl) September 14, 2022
Do Kwon’s case: Fresh twist appears as LUNA holders go down in worry
South Korea’s Ministry of Foreign Affairs announced on Wednesday (5 October) that Terraform Labs Pte. Ltd. CEO Kwon Do-Hyung, aka Do Kwon, would have his passport revoked in four weeks if he did not return it.
Well, Do Kwon had an arrest warrant out for him, and his name has been widely reported to have been added to the red list by International Police.
Claims and counter-claims
Do Kwon has been using his social media accounts to debunk reports from South Korean outlets and other news sources from the beginning of the event.
He tweeted on 17 September, just days after word of his arrest warrant leaked, and insisted that he was never on the run. He also stated that he and his team would cooperate with any government agency that reached out to them.
The co-founder of Terra reportedly had his assets blocked, and this was reported many times. Do Kwon in his tweet also claimed that no money of his had been frozen.
On 28 September, his team sent a statement to the Wall Street Journal saying they believed the case had become extremely politicized and that the conduct of the Korean prosecutors revealed unfairness and a failure to defend basic rights granted under Korean law.
Do Kwon and his team had also made it clear that regardless of what interpretation Korean financial authorities may have recently taken, they still consider Luna not to be security.
Price action not looking good
The previous 24 hours of LUNA price data showed the asset had been losing value. Opening at $2.588 on 5 September, LUNA dropped to close at $2.548, a loss of 0.37% from its opening price.
As of the time of this writing, the price drop was above 1% during the trading period. It appeared that $2.138 was still providing solid support and that $3.071 was still providing resistance.
From the looks of the price chart, the original news of Do Kwon’s arrest did not have much of an effect on the asset’s value. But volume looked to have dropped significantly after the release of the Interpol red list, and the latest information concerning the passport invalidation also seemed to have triggered the negative price movement.
Did LUNC also take a hit?
Although the pattern does not immediately reveal whether or not Do Kwon’s news developments affected LUNC’s trading, it appeared to be trading down as well.
However, as seen by the volume indicator, trading volume has been declining over the past two days. Additionally, it revealed that LUNC had dropped by more than 2% in the preceding day.
Beginning the day at $0.000307, it traded as high as $0.000307 before settling at $0.000300 by market close on 5 September. Its support at $0.000263 had been tested throughout the previous weeks, but it appeared to be holding. The resistance appeared to be in the $0.000370 area.
As the Terra saga continues to drag on, prospective investors may wish to wait before making any decisions. Consequently, it’s possible that new investors won’t be joining the ecosystem very soon. Furthermore, if investors are unsure about the story’s eventual resolution, selling pressure could increase and growth would slow.
Do Kwon deems news of $40M crypto freeze a ‘falsehood’
Do Kwon deems news of $40M crypto freeze a ‘falsehood’ Oluwapelumi Adejumo · 6 hours ago · 2 min read
The Terra community is working on several ideas that could lead to the re-peg of USTC and boost the value of LUNC.
2 min read
Updated: October 5, 2022 at 4:58 pm
Cover art/illustration via CryptoSlate
Terra founder Do Kwon has described news of South Korean prosecutors freezing his $39.66 million crypto as a “falsehood.”
I don’t get the motivation behind spreading this falsehood – muscle flexing? But to what end?
Once again, I don’t even use Kucoin and OkEx, have no time to trade, no funds have been frozen.
I don’t know whose funds they’ve frozen, but good for them, hope they use it for good 🙏 https://t.co/gSucKfqsxj
— Do Kwon 🌕 (@stablekwon) October 5, 2022
On Oct. 5, South Korean local media outlet News1 reported that the country’s prosecutors had frozen 56.2 billion won ($39.66 million) belonging to Kwon and domiciled in two crypto exchanges, KuCoin and OKX.
Kwon, however, has described the report as “spreading falsehood,” adding that he “(does not) even use Kucoin and OkEx, have no time to trade, no funds have been frozen.”
The Terra founder further said:
“It’s no surprise that crypto is most popular in countries that weaponize state institutions against their own people for political gain. Reap what you sow – revolutions start from within.”
Kwon denies freeze of 3,313 BTCs
On Sept. 27, reports emerged that Kwon had made a suspicious transfer of 3,313 BTC to two overseas cryptocurrency exchanges after South Korean authorities issued his arrest warrant.
Then, Kwon denied these allegations. He said:
“(There is) no “cashout” as alleged, I haven’t used KuCoin or Okex in at least the last year, and no funds of TFL (Terraform Labs), LFG (Luna Foundation Guard), or any other entities have been frozen.”
Meanwhile, Terraform Labs has defended Kwon, describing the South Korean prosecutor’s arrest warrant for him as “unfair.”
Terra community pushes LUNC, USTC renaissance
The Terra community has been working on several ideas that could lead to the re-peg of USTC and boost the value of LUNC.
A re-peg proposal submitted by Alex Forshaw, Edward Kim, and Maximilian Bryan would lead to the creation of an Algorithmic Fungible Token, USTN, collateralized by 60% of Bitcoin and LUNC’s market capitalization. The proposal also proposes several improvements to Terra’s Capital Control System (CCS).
However, the proposal is being fiercely debated within the community as some members have kicked against some of the ideas being pushed.
Meanwhile, the Terra community has continued to burn the LUNC token. According to Stakebin data, 6.3 billion LUNC tokens have been burnt over the last seven days. Binance revealed that it burnt 5.6 billion of LUNC on Oct. 3.
LUNC Price Gains 50% Despite Kwon’s Troubles, What’s Driving It?
Over the last week, the crypto space has been saturated with news of the hunt for Terra (LUNC) founder Do Kwon. The South Korean founder is now being hunted by both South Korean authorities, as well as Interpol, which means Kwon is now wanted in 190 countries. However, Kwon’s troubles seem not to have affected the price of LUNA Classic (LUNC), as it continues to see green even when the broader market suffers losses.
LUNA Classic Grows 50%
Speculations around the performance of LUNA Classic (LUNC) had risen drastically once Kwon was officially declared wanted by the authorities. It was mostly expected that the digital asset would take a beating from the resulting decline in positive sentiment among its investors, but this has not been the case. LUNC has instead shaken off these incredibly bearish developments and has been one of the market leaders in terms of gains.
Over the last 7 days, the price of LUNC is up more than 58%, whereas its larger counterparts, such as Bitcoin and Ethereum, have been seeing single-digit and negative gains. The daily trading volume of the cryptocurrency remains high, with almost a billion dollars in volume reported by Coinmarketcap. LUNC had also successfully knocked off another zero over the past month to bring its trading price to the $0.0003 level.
LUNA Classic trending at $0.00032 | Source: LUNCBUSD on TradingView.com
Even coming out of the weekend of low performance in the crypto space, LUNC has begun to turn towards green, already up 1.80% in the last hour as of the time of this writing. It also shows no sign of decline at this time as it continues to receive massive support from crypto traders.
Why Is LUNC Price Up?
Since the collapse of the Terra network, there have been some strides made in an effort to restore it by those who refuse to give up on it. It was a long time in the making, but the community had eventually agreed on a 1.2% transaction fee on all transactions, which are then sent to a burn wallet to reduce the available supply of the token.
Binance, the largest crypto exchange in the world, had also joined in this effort to support LUNC’s price by announcing that it would be burning all fees realized from LUNC trading on its platform. LUNC’s price had surged more than 60% off the back of the announcement alone as the crypto exchange announced that it would be carrying out a scheduled weekly burn every Monday.
Another factor that has been propping up the price of LUNA over these past couple of weeks has been rumors that have been circulating that LUNC was going to get listed on some important platforms. These trading platforms include Robinhood and Coinbase, a move that would instantly drive up the value of any cryptocurrency. However, these are just rumors for the time being.
Nevertheless, LUNC remains a fan favorite over this time due to its high volatility. Its already established community is also a draw for investors who believe that the digital asset could return to its past glory. But with its founder currently rumored to be on the run from authorities, it is unlikely these large trading platforms will pick it up.
Featured image from Finbold, chart from TradingView.com
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