After the arrest of Do Kwon in Montenegro, an active investigation was launched against him and other Terra employees. Let’s look at a few new details.

Do Kwon, the co-founder and CEO of Terraform Labs, has asked for the dismissal of the charges against him by the SEC, arguing that the agency's claims are invalid and that Terra's tokens and projects do not specifically target US investors. Kwon's counsel also claimed that the agency lacked proper jurisdiction to bring charges against Kwon and Terraform Labs. A South Korean court recently dismissed security violation charges against Terraform Labs co-founder Hyun-seong Shin, deeming LUNA as non-security under Korea's Capital Markets Act, making Kwon's motion right only in connection to LUNA. However, Kwon faces allegations in Seoul related to the transfer of over 10,000 Bitcoin from the Terra platform and Luna Foundation Guard to a cold wallet, later converted to fiat. The amount transferred is approximately $100 million, verified to have been dispersed in various locations.

The legal team defending Do Hyeong Kwon, co-founder of Terraform Labs, has argued that the U.S. Securities and Exchange Commission (SEC) has no jurisdiction in the matter of the lawsuit filed against Kwon. Kwon's lawyers claim that U.S. law precludes regulators "from using federal securities law to assert jurisdiction over the digital assets in this case." Kwon faces charges of leading a multibillion-dollar crypto-asset securities fraud filed by the SEC in mid-February 2023, but his lawyers have filed a motion to dismiss the lawsuit, citing the SEC's definition of digital assets as securities is far from clear.

Terra Labs halted the operation of Terra in May 2022 due to the demise of its ecosystem that was brought on by investors dumping their Terra stablecoin, TerraUSD, en masse.

Daniel Shin, co-founder of Terraform Labs, has reportedly appeared in a South Korean court to be interrogated regarding his potential role in the collapse of the project's native token LUNA and its algorithmic stablecoin UST last spring. The crash resulted in investor losses of approximately $40 billion, with Do Kwon being identified as the main culprit behind it. Shin was previously accused of conducting numerous offenses, including violation of the Capital Markets Act and the Electronic Financial Transactions Act. Shin claimed he cut ties with Terraform Labs in 2020 and had nothing to do with the collapse. Kwon was recently arrested in Montenegro after being on the run for several months and charged with securities fraud, commodities fraud, and conspiracy. It remains unknown where he will face justice, but he is likely to be deported to either the USA or South Korea.

The law has finally caught up to Terraform Labs CEO Do Kwon.

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South Korean prosecutors have requested an arrest warrant for the former CEO of Tmon, a Korean e-commerce platform, after taking billions of won in LUNA (LUNA), now known as LUNA Classic (LUNC), for promoting Terra as a simple payment gateway. 

The South Korean authorities reportedly issued an arrest warrant to a former Chief Executive Officer of the e-commerce giant TMON.

Terra Classic price is building momentum to correct a 3% dip recorded in 24 hours. Before the pullback to 0.0001720, LUNC traded new 2023 highs of $0.0001936. With support at $0.0001720 staying intact, Terra Classic price might push for the resumption of the uptrend during the American session.