In a recent bankruptcy court hearing, Terraform Labs was given permission to shut down its operations, drawing interest from investors. The US Bankruptcy judge has sanctioned this plan, which follows the company’s resolution with the US Securities and Exchange Commission (SEC). Interestingly, this news seems to have positively influenced market sentiment, as demonstrated by today’s surge in the prices of LUNA and LUNC.
Terraform Labs Receives Court Nod To Wind Down Operations
According to a recent article from Reuters, Terraform Labs has been given the green light to shut down their business following legal approval. During a recent bankruptcy court proceeding, Judge Brendan Shannon approved the company’s proposal to sell off its assets, which has raised hopes among investors.
The approval is granted subsequent to a resolution between the company and the US Securities and Exchange Commission (SEC). It’s worth mentioning that this isn’t the first time the firm and its founder Do Kwon have faced allegations from the SEC, who accused them of defrauding investors following the crash of TerraUSD and LUNA in 2022. Significantly, this crash led to approximately $40 billion in losses for traders.
In simpler terms, the Judge has referred to this approval as a “pleasant choice” instead of the prolonged court case. Essentially, this approval will enable the company to begin selling off its remaining possessions, with an expected payout ranging from $184.5 million to $442.2 million for investors and other involved parties.
Nevertheless, the company admitted that they cannot precisely determine the sum of recoverable crypto losses, stating it as “impossible to calculate” the overall losses that might be reimbursed. It’s worth mentioning that Terraform Labs has consented to a $4.47 billion settlement with the SEC, but it is unlikely that the agency will gather a significant amount from this settlement.
The regulatory body will accept the payment once all cryptocurrency loss claims have been reimbursed during the liquidation phase, demonstrating their recognition of substantial investor losses.
LUNC and LUNA Prices Rally
While composing this text, the price of Terra Luna Classic surged more than 8%, reaching $0.00008743. It had earlier peaked at a 24-hour high of $0.00008829. Moreover, its trading volume increased by approximately 85% to reach $26.17 million. At the same time, LUNA’s price climbed around 9%, hitting $0.4033, and its trading volume skyrocketed by 42% to $47.12 million.
As a crypto investor, I’ve noticed some exciting movements with LUNA today. It reached a 24-hour high of $0.4092 and dipped to a low of $0.3711. Interestingly, data from CoinGlass suggests that the interest in both LUNC and LUNA Futures contracts has significantly increased, surging over 28% and 27%, respectively. This rise indicates a growing market confidence in these assets.
To put it simply, an examination of the current LUNC pricing trends indicates that it might reach $0.000135 if it successfully breaks through a significant resistance barrier. This optimistic prediction, in light of Terraform Labs’ bankruptcy announcement, seems to have positively influenced investor confidence, as demonstrated by the recent price increases.
Moreover, some encouraging advancements within the Terra environment have significantly enhanced market confidence. To give an example, the Terra Luna Classic has effectively carried out the v3.1.5 update, primarily focusing on enhancing security and crucial elements of the ecosystem.
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2024-09-20 01:04