4 months ago 2 min read

Terra Classic Increases By 17%, and Korean Authorities Want to Arrest the Co-Founder

Terra-LUNA-Korea-Crypto-CryptoNews

The Terra biosphere was severely damaged within a few days of the collapse of the LUNA currency in May 2022. The replacement, Luna Classic (LUNC), is currently experiencing another price increase.

LUNC momentarily increased in price by 20%, reaching $0.00019439 in value. The price of LUNC had corrected as of the time of publication. LUNC, on the other hand, was still trading at $0.00018 and had increased in value by 11% in the previous day.

The sixth batch of the Terra Classic token burn on Thursday on Binance burned more over 6 billion LUNC, which served as the catalyst for the abrupt push. 12.77 million LUNC were destroyed after Binance delivered $1 million worth of LUNC tokens to a defunct address.

Binance has now destroyed approximately 20 billion LUNC tokens with the ongoing token burn.

In September of this year, the top cryptocurrency exchange launched the Terra Classic (LUNC) burn mechanism for trading commissions. It was an answer to a proposal from the LUNC community.

Binance burns all trading commissions for LUNC spot and margin trading pairs by sending them to the LUNC burn address. Each month, both the on-chain transaction ID and the precise quantity of LUNC burned are made public.

By destroying tokens and thereby lowering the supply, the LUNC community hopes to make the token deflationary.

The supply and demand hypothesis states that when token supplies fall and they become more scarce, their value rises. This appears to be working fairly effectively right now, since most of the time when the burn occurred, LUNC has observed green daily candles.

Co-Founder of Terra Threatened With Arrest In South Korea?

Other Terra ecosystem information includes Terraform Labs Pte. Co-founder of Ltd. Shin Hyun-Seung, also known as Daniel Shin, and seven additional Terra workers are scheduled to appear in court today in South Korea.

Prosecutors from South Korea are being heard in order to issue an arrest warrant for the eight people. Hearings for Shin and the other Terra employees have started today in response to this.

According to the Korea Times, Shin is charged with making illegal gains from the cryptocurrency LUNA totaling over 140 billion Korean won, or around $107 million.

He is charged with utilizing the personal information of Chai Corporation users to advertise Terra Luna and promoting the Terra stablecoin despite receiving many warnings from authorities.

Prosecutors in South Korea assert that Shin and his associates disregarded their obligations and broke both the Capital Markets Act and the Electronic Financial Transactions Act.

Shin disputes the allegations and maintains that he sold more than 70% of his LUNA holdings prior to the price increase. He further says that after the May crash, he still had a sizeable holding of LUNA.

Either late on Friday night in South Korea or on Saturday, a decision is anticipated.

The CEO of Terra, Kwon Do-hyung, also known as Do Kwon, is remarkably still at large. In September, the South Korean government issued an arrest warrant for Do Kwon.

His passport was deemed invalid by South Korean authorities in October. Do Kwon may have been in Europe, Singapore, or Dubai during this time, according to rumors.

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