Binance has temporarily ceased operations of Terra Traditional (LUNC) Burns: Token Drops 12%

Binance has temporarily ceased operations of Terra Traditional (LUNC) Burns: Token Drops 12%

Binance is a cryptocurrency exchange that is the largest in the world in terms of daily cryptocurrency trading volume. It was formed in 2017. Its headquarter is in the Cayman Islands. Binance was founded by Changpeng Zhao, a developer who previously built high frequency trading software. Binance was founded in China but relocated its headquarters soon before the Chinese government put limits on cryptocurrency trading.

Binance was investigated for money laundering and tax evasion by the US Department of Justice and the Internal Revenue Service in 2021. The UK’s Financial Conduct Authority ordered Binance to discontinue all regulated activities in the UK by June 2021. Binance provided Russian authorities with client information, including names and addresses, in 2021.

Binance Suspends Terra Classic ($LUNC) Trading, LUNC Price Drops

Binance, the world’s largest cryptocurrency exchange, has temporarily halted the burning of Terra Classic (LUNC) transaction fees until March 2023. The move follows the discussions around Proposals 10983 and 11111 to support the commodities pool. Furthermore, instead of 100%, the crypto exchange will burn 50% of LUNC spot and margin trading costs.

Binance Makes Terra Classic (LUNC) Burning Changes

Cryptocurrency exchange Binance announced on December 28 that it is changing its LUNC burn process to continue to help the Terra Classic community in limiting the LUNC token supply. Thus, Binance will burn 50% of the LUNC spot and margin trading fees instead of 100% with effect from December 28. Binance claims the decision follows recent developments linked to Proposals 10983 and 11111, in which LUNC burn is re-minted as a development fund.

Furthermore, until March 1,2023, the crypto exchange will postpone delivering Terra Classic (LUNC) trade fees to the burn address. It will restrict the re-issuance of LUNC trading fees unless the community approves crucial measures. Furthermore, Binance is in talks with the Terra Grants Foundation, lead by Terra Classic core developer Edward Kim, to implement the necessary adjustments.

It entails generating a new burn wallet to prevent LUNC token re-minting and whitelisting Binance’s wallets to avoid tax when transferring between these wallets. Binance has stated that if the community does not make these modifications, the crypto exchange may discontinue the burn mechanism.

Terra Rebels was blamed by Validator LUNC DAO for entirely breaking its partnership with Binance. He proposes that the LUNC community meet the requirements in order to keep Binance’s support. The community voted to cancel Proposal 10983, which would have restored 10% remint from the 0.2% burn tax and added it to the communal pool instead of 50% remint.

What are Binance’s demands?

The exchange is in contact with the Terra Grants Foundation team in order to make certain improvements. Binance has requested the construction of a new burn wallet, according to the announcement.

The exchange will transmit the LUNC spot and margin trading costs to the new wallet, which will not enable the burn amount to be re-minted. The company has also requested that its wallets be whitelisted. It is done to avoid paying the transaction tax while transferring funds between these wallets.

Binance has halted delivering LUNC trading fee burn donations till March 1st. This will provide the project enough time to make the required improvements. However, if the adjustments are not implemented within the time limit specified, the exchange “will consider withholding the burn contribution in the future.”

The price of LUNC has fallen by 12% in the last 24 hours. It is crucial to note, however, that the asset has recovered 47% since December 22nd. LUNC was trading at $0.00016568 at press time, up 1% in the previous hour.

Executives from $1.5B South Korean crypto exchange fraud jailed – Reports

Executives from $1.5B South Korean crypto exchange fraud jailed – Reports

Do Kwon, the South Korean inventor of the bankrupt cryptocurrency Terra, has denied being on the run after Singapore detectives indicated he was not in the city-state as previously assumed. Kwon’s whereabouts have been called into doubt following a late-Saturday statement from Singapore police, and his tweets have not revealed where he is. Terraform Labs’ failure earlier this year resulted in the loss of around $40 billion in investor funds. Kwon has been accused of fraud by five South Korean investors; he is being probed by a financial crimes unit and the Securities and Exchange Commission in the United States.

On Wednesday, a South Korean court issued an arrest order for Kwon. He tweeted early Sunday, “I am ‘not on the run’ or anything related,” but did not specify where he was. He stated that they are fully cooperating with every agency that has shown a desire to connect, and that they have nothing to conceal.

They are defending themselves in many jurisdictions and hope to prove the truth in the coming months. Previously, the 31-year-old was assumed to be in Singapore, where he gave his first media interview since the crypto operator declared bankruptcy in May. “Do Kwon is now not in Singapore,” the Singapore police agency stated in an email late Saturday.

“SPF will help the Korean National Police Agency (KNPA) in accordance with our domestic regulations and international commitments,” the short statement added, without going into further detail. According to the Straits Times, Kwon’s work visa in Singapore was set to expire on December 7, but his application for renewal may now be jeopardized.

Prosecutors in South Korea have also issued arrest orders for five additional persons associated with the stablecoin TerraUSD and its sibling cryptocurrency Luna. Kwon’s Terra/Luna system imploded in May, with the prices of both tokens dropping to near zero and the repercussions affecting the broader crypto market. Its demise resulted in losses of more than $500 billion.

Stablecoins are intended to be reasonably steady in price and are typically tied to a real-world commodity or money. TerraUSD, on the other hand, was algorithmic, utilising programming to keep its price around one US dollar. Many investors lost their life money when the Luna and Terra crashed, and South Korean authorities have launched various criminal investigations into the catastrophe.

Executives implicated in a $1.5 billion cryptocurrency exchange fraud in South Korea have been imprisoned

The current court decision brings the total number of V Global executives behind bars to seven, after the CEO was previously sentenced to 22 years in jail. Six executives implicated in the $1.5 billion (2 trillion won) South Korean crypto exchange scam V Global were sentenced to up to eight years in jail, although three were not arrested so they could continue to fight charges in court. Between July 2020 and April 2021, V Global attracted over 50,000 investors by promising 300% profits as well as large bonuses for referring new consumers.

According to a translation of December 26 stories from South Korean media sites such as Economist.co.kr, two high-ranking executives, Mr. Yang and Mr. Oh, were sentenced to eight and three years in prison, respectively, for their roles in cheating investors. Another four anonymous executives were sentenced to three years in prison and five years on probation. Three of the six have not yet been jailed because they have claimed innocence and have the right to defend them in court.

“The defendants exclusively trusted the VGlobal management team, avoided accountability, and once the inquiry began, they destroyed evidence and interfered with the investigation,” stated the judge from the 12th Criminal Division of the Suwon District Court. The judge, on the other hand, was said to have been kind with the defendants because the real amount of fraud and number of investors affected was smaller than first estimated last year. According to Kyeongin’s February reporting, this was due to later evidence indicating that about 10,000 investors had received returns from V Global through payments from multilevel marketing incentives such as customer recruiting bonuses.

Many are alleged to have re-invested their winnings before the portal was shut down. It was claimed in June of last year that the company had paid out $1,000 customer referral incentives to current investors via the infusion of funds from new users in a Ponzi-like method. The recent court action takes the total number of V Global executives behind bars to seven, following the February conviction of the CEO, known as Mr. Lee, for 22 years in prison.

Do Kwon, Terra’s co-founder, is facing a $57 million lawsuit in Singapore for financial fraud

Do Kwon, Terra’s co-founder, is facing a $57 million lawsuit in Singapore for financial fraud

Victims of the UST-induced market crisis that saw over $40 billion in crypto assets evaporate in May have filed a fresh lawsuit in Singapore against embattled Terra Form laboratories CEO Do Kwon, the Luna Foundation Guard (LFG), and Terra founding partner Nicholas Plates.

What Went Wrong with TerraUSD?

Do Kwon’s promises were readily swept away by waves on May 9, 2022, when the TerraUSD (UST), valued at $18 billion at the time, collapsed.

The cryptocurrency failed to hold its $1 peg, falling to $0.35. LUNA, a token designed to keep the UST price from plummeting precipitously, saw its value plummet from $80 to a few cents.

The TerraUSD collapse occurred in three stages, beginning with two dealers violating the currency’s peg. Terraform Labs and three allies attempted to “fix” the situation by acquiring $2 billion in UST. As a result, the funds were depleted due to an uncontrolled sell-off.

The development did not end there, as it hyperinflated LUNA and eventually destroyed the prices of the two assets, forcing the crypto market to lose almost $40 billion.

Do Kwon’s Legal Headache

According to documents filed in Singapore’s high court on September 23, 359 people claimed that Kwon and his co-defendants made false representations about Terra’s algorithmic stablecoin TerraUSD’s reliability (UST). The plaintiffs expressly claimed that Do Kwon was aware of “the structural fragility of algorithmic stablecoins” as a result of his engagement with Basis Cash (BAC), another stablecoin that failed under his supervision in early 2021, before the launch of UST.

The claimants further claimed that the defendants “knew or should have known that the claimants wanted to buy and hold digital stablecoins that were not susceptible to the volatility of the broader market and yield a respectable passive return.” The claimants sustained significant losses on their UST holdings as well as additional damages as a result of the trio’s acts. The claims asked the court to give them approximately $57 million for their losses and to force the trio to pay “aggravated damages.”

The case comes amid an intensifying search for Kwon, who has now become an international fugitive after South Korea issued an arrest warrant. Therefore, the Terra blockchain ecosystem collapsed in May, Kwon has been the victim of many legal actions and threats. In September, South Korean authorities issued an arrest order for the Terra co-founder, which was later rejected, and Interpol added Kwon to its Red Notice list, urging that law enforcement identify and possibly jail him. On October 6, the South Korean Ministry of Foreign Affairs issued a notification ordering Kwon to return his passport within 14 days, or it would be invalidated.

Since his Terra empire collapsed in May, leaving millions of investors with severe losses, the Korean-born developer has been the target of several litigation lawsuits in the United States and South Korea over the last four months.

Eventually, local media reported that prosecutors were “in the process of freezing” tokens “believed to be owned by Kwon.” These coins were allegedly stored on an unknown “overseas” cryptocurrency exchange that was “cooperating” with the Seoul Southern District Prosecutors’ Office.

Despite not identifying his location, Kwon has been active on social media amid the issue and stated in September that he was “making zero attempt to conceal.” In reaction to the complaint, one Redditor said Kwon was “doing a bad job at acting innocent for a guy who is innocent.” Others speculated that he had undergone plastic surgery to conceal his features.

Conclusion

While it is unclear where Kwon is, Korean authorities reportedly claimed that he left Singapore for Dubai last month. However, no documents were found indicating that Kwon had entered the city, prompting Korea to ask neighbouring countries to assist in tracking his location. Kwon denied being on the run in a recent interview but refused to identify his location.

Learn more about the 21.7 million dollars loss tied to the Terra implosion as reported by Coinshares

Learn more about the 21.7 million dollars loss tied to the Terra implosion as reported by Coinshares

With the crypto industry going through a bear market, various cryptocurrencies and markets have had to incur huge losses. While some losses have been retrievable, some have been difficult to get back from. It has also been suggested that the number of losses faced by the crypto industry, could be potentially one of the worst it has ever experienced in its lifetime. This article has tried to unravel some facets of the huge losses incurred as a result of Terra implosion in the reports suggested by Coinshares.

What did the report suggest?

The European Cryptocurrency investment firm, recently published its report which was the interim Q2 2022 report wherein it talked about the comparisons of its yearly quarters. It was suggested that the company which had a yearly quarter of 19.6 million pounds in the previous year, had to face a decline in its quarter this year, with it falling as low as 14.2 million pounds. Its net income also showed a major decline trend with ut falling from a sum of 26.6 million pounds in the previous year to 0.1 million pounds this year.

The major reason for this unimaginable downfall of all aspects was said to be because of its exposure to the Terra. Terra is referred to as Terra Classic or LUNC. With the fall of the Terra classic in May this year, the firm also had to face a major downfall in downfall segments.

What did the authorities at Coinshares have to say about it?

After the reports suggested the firm going through a tough time, the authorities at the firm came out with explanations for the same. They said that the Asset Management system, even though gave rise to profits it was the Capital Market business that had to bear the brunt of the Terra implosion. They further said that their loss is nothing compared to the financial loss that other players in the same race have had to face. However, this had a severe impact on their quarter.

It had to incur a loss of almost 17.7 million dollars as a result of the debugging of the Terra classic. However, it did not crumble under the impact.

Take a look at the Coinshares Capital Market

Some things further need to be shed light upon to help the readers know more about the Capital Market. The Capita Marke does not generally take up any directional position, as a result of which it is not directly exposed to the collapse of the Terra LUNA. But several other factors led to the heavy financial loss of the firm.

At the time of the implosion, the firm had a book that was linked to the TerraUSD stablecoin which when exposed to the implosion led to a tremendous financial loss. However, the authorities at the firm have hope still o help the firm revive.

Terra implosion

Conclusion 

After the incident faced by the firm and the events that followed, they decided to take immediate and drastic measures to revive the firm. They have taken up a new review process wherein they are trying to assess the risks that lurk in the market as well as their risk profile system. They have now shifted into a more defensive method that would protect them from any such situations that may arise in the future, given the fluctuating nature of the market.

The firm, Coinshares already has several systems that are in place and are highly efficient in assessing risks that threaten the market, especially in times of turmoil. They also have two other factors that can work in their favor which are, a strong balance sheet as well as an efficient team.

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