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- MIR and LUNA have been categorized as securities by a U.S. federal judge.
- Terra (LUNA) bulls lose control as fundamental and technical factors continue to strengthen already existing selling pressure.
Mirror Protocol (MIR) and Terra (LUNA) have been branded as securities by a U.S. federal judge on Thursday. The Judge claims that Terra’s creator marketed the assets as cryptocurrencies and broke federal securities laws as a result.
Meanwhile, Do Kwon, the cryptocurrency entrepreneur and the creator of Terra, is still navigating the chaos of the back and forth with law enforcement officials. During his previous hearing held in May, he rejected charges pressed by the Montenegrin prosecutor.
According to a spokesperson who spoke directly to CoinDesk, it was disclosed that they do not consider Luna and the UST, along with the other assets, to be securities. Terraform Labs’ spokesperson wrote in an email;
We strongly disagree with the decision and do not believe that the UST stablecoin or the other tokens at issue are securities. Further, the SEC’s fraud claims are not supported by evidence, and we will continue to vigorously defend against those meritless allegations at trial.
Although his legal team has maintained that the U.S. allegations are false, and promises to continue to push back on the charges, they are yet to make any official public statement.
In November, the court in Montenegro confirmed that Do Kwon would be extradited to either the United States or South Korea as both nations are out for him. The high court also stated that Do Kwon agreed to be handed over to South Korea. The court now awaits final approval from the justice minister.
LUNA and MIR Record Lower Lows
Recall that the former Terra boss was charged in the U.S. for defrauding victims of millions of dollars. As the public looks forward to the coming months, some of Do Kwon’s allies are already serving a four-month jail time for forging their passports.
In the coming months, the new development could have a significant impact on the price of Luna. Market players, in a bid to secure their funds, could pull out of the market and cause a major decline in Luna’s overall value. However, at report time, our data shows that Luna is trading for $0.8673.
The asset is already making a downward correction with losses reaching over 6%, and the market cap has recorded around the same number of losses.
Luna, which was previously one of the highest-ranking digital currencies by market cap, has nosedived since the regulatory crackdown on Terra and its former CEO.
Luna has dropped by 5.47% over the last 24 hours. Its year-to-date value has also dropped by a whopping 30.85%. A bullish turnaround for Luna could be recorded if there is a sizeable reduction in selling pressure. However, in the near term, fundamental and technical factors are not in the asset’s favor. Similarly, MIR is also trading in the red zone, down by 12% from the previous day to now trading at $0.0008794.
