12.08.2025 08:20

Do Kwon, the founder of Terraform Labs, is reportedly negotiating a guilty plea in a significant US criminal case stemming from the catastrophic $40 billion collapse of the Terra ecosystem. This development, revealed by Bloomberg, citing sources familiar with the ongoing negotiations, has sent ripples throughout the cryptocurrency market.

The potential plea agreement represents a dramatic turning point in a protracted legal saga that has profoundly impacted the value of LUNA and LUNC, the tokens associated with the failed Terra project. Investors are carefully assessing the potential market repercussions of this significant legal development, leading to price declines in both cryptocurrencies.

Kwon's legal woes extend beyond the US. Already convicted in Montenegro for using forged documents – a conviction that preceded his extradition to the US – he faces additional extradition requests and parallel criminal investigations in both the US and South Korea. While a guilty plea in the US might expedite the American legal proceedings, it doesn't automatically resolve the outstanding charges in other jurisdictions.

The ongoing legal battles, coupled with regulatory uncertainty, have dampened investor enthusiasm. Consequently, both LUNA and LUNC are currently trading near crucial technical support levels. LUNA, for example, hovers slightly above its 20-day moving average, indicating a precarious position within the current market conditions. The situation highlights the considerable uncertainty surrounding the future of these cryptocurrencies and the broader implications for the crypto market. The details of any potential plea bargain remain undisclosed, leaving the ultimate consequences for Kwon and the market in question.