Terraform Labs founder Do Kwon is reportedly in discussions to plead guilty in a U.S. criminal case related to the 2022 collapse of the $40 billion Terra ecosystem. According to an August 11 Bloomberg report citing sources familiar with the matter, this potential plea represents a significant development in the high-profile legal battle that has cast a shadow over the Terra and Terra Luna Classic tokens for over two years.
Do Kwon’s escalating legal challenges
Sources told Bloomberg that U.S. prosecutors and Do Kwon’s legal team are in talks over a possible plea deal, though no agreement has been finalized. Since his extradition from Montenegro—where he was arrested in March 2023 on suspicion of using forged travel documents—Kwon has been held in U.S. custody.
He faces charges of fraud and securities violations related to TerraUSD, the algorithmic stablecoin whose collapse triggered a widespread market selloff in May 2022.
Terraform Labs, which filed for bankruptcy in January, has denied any wrongdoing. However, legal pressure on Kwon has intensified, with both U.S. and South Korean authorities pursuing parallel criminal cases. While a plea deal could accelerate U.S. proceedings, it would not necessarily resolve charges in other jurisdictions.
Amid ongoing legal and regulatory challenges, investor sentiment remains cautious, with both LUNA and LUNC trading near critical technical levels.
LUNA’s technical outlook
LUNA is currently trading at $0.1602, slightly below the 20-day moving average of $0.1612 and beneath the upper Bollinger Band resistance at $0.1761. The relative strength index (RSI) stands at 44.75, indicating neutral momentum.
Over the past week, LUNA’s price has been consolidating between $0.148 and $0.169. Trading volume rose by 39.50% in the last 24 hours, while open interest fell by 6.16%, suggesting that leveraged traders remain cautious.
A sustained move above $0.169 could push the price toward $0.176 and $0.190, while a drop below the $0.158 support level may lead to a decline toward $0.148.
LUNC’s technical outlook
LUNC is currently trading at $0.00006116, slightly below the upper Bollinger Band resistance of $0.00006464 and near its 20-day moving average of $0.00006060. The RSI of 46.37 suggests a modest recovery from oversold conditions.
Over the past seven days, LUNC has traded between $0.00005686 and $0.00006417. Trading volume increased by 3.20%, while derivatives volume rose 17.18%, but open interest declined by 3.62%. A break above $0.00006417 could push the price toward $0.00007000, whereas a rejection at that level may see it fall back toward the $0.00005700 area.
