Last Friday’s crypto market dip on Silvergate Bank concerns weighed heavily on #Luna Classic (LUNC), the cryptocurrency that powers the original but not largely defunct Terra blockchain ecosystem. 

After dipping more than 10% on Friday from near $0.00017 to around $0.00015, the cryptocurrency has since eased a little lower to stabilize in the mid-$0.00014s. 

What had been a key support area around $0.0001550 should now be viewed as an area of near-term resistance. Meanwhile, traders are also monitoring support just under $0.00014 in the form of a late 2022 low. 

As the broader #cryptocurrency market stabilizes ahead of a busy week of macro events, including a barrage of key US jobs data and a testimony from Fed Chair Jerome Powell before the US Congress, LUNC bulls will be hoping the cryptocurrency can continue to find support above this level, as was the case last Friday.

If this support area were to fail, a retest of the late 2022 lows in the $0.000127 area would become a distinct possibility. That would take LUNC’s drop since the 2023 highs around $0.00021 to a massive 40%.

Singapore Opens Investigation into Terraform Labs

Reports in the crypto media on Monday suggest that authorities in Singapore have opened an investigation into #Terraform Labs, the company behind the development of the #Terra blockchain. 

Singapore is where Terraform Labs was previously incorporated and where, for a long time, the blockchain’s creator, Do Kwon, had been residing.

Do Kwon, who is South Korean, is wanted by South Korean police and is currently thought to be in hiding in Serbia. Do Kwon is wanted over his role in the spectacular collapse of the Terra blockchain ecosystem last May – where algorithmic stablecoin UST lost its peg to the US dollar, triggering a hyperinflationary spiral in LUNC and causing a $40 billion wipeout in the Decentralized Finance (DeFi) ecosystem, the reverberations of which are still being felt today.

The US Securities and Exchange Commission has accused Do Kwon and Terraform Labs of fraud and alleges that Kwon has laundered over $100 million in Bitcoin that he stole from the Luna Foundation Guard.

On March 23, Do Kwon, the founder of the failed cryptocurrency network #Terraform Labs, was arrested after months of evading authorities and regulators.

Kwon is responsible for over $40 billion in losses following the crash of two crypto assets, #LUNA and TerraUSD algorithmic #Stablecoins , #USTC .

The news of Kwon's arrest broke on March 24 after reports emerged that a man believed to be Kwon had been apprehended in Montenegro while trying to leave the country with fake documentation.

The identity of the man was later confirmed through fingerprint matching by Interpol. Kwon had been on the run since South Korea issued a warrant for his arrest last year, and reports suggest that South Korea had asked Interpol to issue a red notice concerning him.

Kwon and Hang Chang, Terraform's CFO, had been hiding in Serbia before moving to Montenegro to avoid being tracked by authorities.

Kwon has been charged with several fraud-related charges, including conspiracy to defraud, market manipulation, wire fraud, commodities fraud, and securities fraud.

Images of Kwon in handcuffs leaving the Montenegrin court suggest that he and his accomplice, Han Chang, have already been presented in court.

Do-hyung Kwon, the CEO of #Terraform Laboratories, was recently apprehended in Montenegro, which has revealed his earlier rejection of American jurisdiction while on the run. Kwon might have rejected U.S. jurisdiction in order to lessen the harshness of his upcoming punishment, according to a YNA article.

Kwon played a significant role in the "Terra/Luna" incident, which led to the collapse of bitcoin prices globally. He asked the U.S. to extend by 30 days the deadline for submitting an appeal request with regard to violating the summons order issued by the US Supreme Court and Securities and Exchange Commission (SEC) on August 18 of last year, to October 6.

The SEC served Kwon with a subpoena referencing Terraform Labs' "Mirror Protocol" app in person in New York, USA, on September 20, 2021. Kwon fled from Korea in April of last year, a month before the Terra and Luna accident. He has been residing as a wanted man for the past four months.

Kwon's lawyer objected in the documents forwarded to the Supreme Court that the SEC's personal jurisdiction was acknowledged by the 2nd Court of Appeal despite Terraform being a Singapore corporation and Kwon being a Singapore resident. According to Kwon's side, the court's ruling on its personal jurisdiction is comprehensive and significant, taking into account both the general environment and the digital market.

By applying the judicial approach of adding together the penalties for each separate offense, it is conceivable to condemn someone to more than 100 years in jail in the United States. The highest penalty for economic crimes in #Korea is only around 40 years, and there are no rules or laws defining whether #cryptocurrency is a security or not.

Observers speculate that Kwon's rejection of U.S. jurisdiction may have been an effort to buy himself some time to flee while also lessening the harshness of his future sentence. Nonetheless, Kwon is currently being held in custody in Montenegro and is being tried for using fake documents. His legal counsel has stated that "no response" when asked whether the man wants to be extradited to South Korea or the United States.

Regarding the legality of cryptocurrencies and economic crimes in several nations, the case of Kwon and Terraform Laboratories has generated interest and created doubts. It will be interesting to see how the case affects upcoming cryptocurrency-related laws and legal procedures as it develops.

According to reports, #DoKwon was detained while attempting to use forged Costa Rican passports to catch an aircraft to Dubai. A fake Belgian passport was also found among his belongings. According to an investigation by Interpol, forging a passport is a serious offense in Montenegro that carries a sentence of up to five years in jail.

This news is republished from https://coinaquarium.io/