The bearish blues hover over Terra’s LUNA price as the crypto market’s recent crash has put all the coins under pressure once again.
For Terra, mid-$2.30 levels have performed as support above the bottom recorded last Thursday at $2.10. LUNA pricing avoided making a new all-time low on Tuesday.
Because LUNA 2.0, like most cryptocurrency markets, has failed to hit higher highs, the present consolidation is most likely only a break for the bearish.
Since its price dropped shortly after CEO Do Kwon’s revival plan was published on May 29, the new Terraform Labs coin has been on a regular downturn.
On Monday, the LUNA price of Terra succumbed to yet another crypto sell-off wave. At the time of writing, the price of LUNA is trading at $2.59 and is up by five percent in the last 24 hours.
Kwon Repeatedly Cashed Out Money From Terra
Do Kwon has been the subject of controversy since the Terra ecosystem collapsed. Before the collapse of sister tokens LUNC (formerly LUNA) and UST, Kwon had repeatedly cashed out from Terra.
The depeg of TerraUSD (UST) and the collapse of Terra’s LUNA took billions off the market value of the tokens. The SEC determined that Kwon was paying out over $80 million from Terraform Labs per month before the project’s collapse, sparking a firestorm of controversy.
Before the catastrophe, Kwon allegedly took $2.7 billion from the Terra network. The claims against the CEO imply that Kwon diverted funds from the project, knowing that UST may depeg, causing the entire LUNC (formerly LUNA) sister token ecosystem to disintegrate, and UST to fall.
FatMan Terra, a member of the Terra community forum, has filed claims against Kwon, who is being investigated by the US Securities and Exchange Commission (SEC) as well as the Seoul Metropolitan Police Department.
He also stated that Kwon took $80 million from Terra 33 times, for a total of $2.7 billion taken from the enterprise in a matter of months via Degenbox.
FatMan further claims that Kwon took $2.7 billion from the MIM/UST pool without adjusting the peg. Through Degenbox and SPELL, Kwon was able to secure cash from regular investors.