Despite The Complete Meltdown And The Founder’s $78M Tax Evasion Sentence, LUNA Remains The Most Popular Cryptocurrency.
Terra (LUNA) saw a complete and total implosion this week; nonetheless, investors continue to trade the token despite its massive drop, which saw the price of LUNA drop from $62 on May 9 to less than a cent on May 14.
On May 20, LUNA is still the most popular cryptocurrency on CoinMarketCap, out of all the cryptocurrencies that people are looking for.
With a market cap of $915 million, the DeFi asset is currently trading at $0.00014, up 8.45% in the last 24 hours and 281.60% in the past week.
What’s more interesting is that the token is trending not only after its recent collapse, but also because South Korean officials have established an emergency financial crimes unit to investigate the collapse of the Terra stablecoin system. In addition, the protocol’s creator, Do Kwon, has been fined $78 million for tax fraud.
The government is trying to figure out why Terra’s dollar-pegged stablecoin, UST, lost its peg on May 9th. Within four days of the crisis, the stablecoin market lost $18 billion, Terra’s TVL lost $26 billion, and the value of Terra’s network token, LUNA, went from $65 to a fraction of a penny, as previously indicated.
The South Korean Financial Supervisory Service and the Financial Services Commission have both requested information from local cryptocurrency exchanges.
The required data includes LUNA and UST transaction volumes, as well as the number of investors who have lost money due to the market fall.
According to the statements of one local exchange operator to Yonhap, “I think they did it to draw up measures to minimize the damage to investors in the future.”
Terra’s parent companies have been found guilty of evading corporate and income taxes by Korean tax officials. Kwon shifted LUNA from its software firm, Terraform Labs, to Singapore’s Luna Foundation Guard (LFG), a non-profit organization created to help Terra, to avoid paying taxes, according to the Korean National Tax Service.
Do Kwon was fined $78 million by the tax authorities for the $3 billion in Bitcoin LFG bought and sold in a last-ditch effort to save UST. He could be fined even more.
The NTS asked Do Kwon and Daniel Shin to pay $100 million in taxes in December, but they resisted since Terraform Labs is based in Singapore. All of their operations, according to the NTS, are controlled from South Korea.
Furthermore, Do Kwon attempted to dissolve Terra’s Korean organizations only a few days before the fall of Terra. Onlookers speculate about how long Do Kwon had been preparing for Terra’s demise before the chain crumbled.
Meanwhile, some of the 200,000 Koreans who invested in either LUNA or UST are suing Kwon over the failed protocol.
A complaint was apparently filed on behalf of investors who incurred financial losses, and the local legal firm LKB & Partners, as well as the firm’s staff, are named as plaintiffs.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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