Do Kwon Faces Charges While Notional Labs CEO Blames Third Parties for Luna Collapse
The legal case against Do Kwon, co-founder of Terraform Labs, continues as he faces fraud charges in the U.S. following the crash of Luna and Terra ecosystem. Jacob Gadikian, CEO of Notional Labs, claims that Kwon is not responsible for the collapse, suggesting that the real culprit remains unidentified. During the UST de-peg incident, Terra’s blockchain saw a sixfold increase in transaction volume, potentially exploited by bots to destabilize UST’s peg. Allegations suggest involvement of Digital Currency Group (DCG) and FTX, according to 3AC co-founder Zhu Su, hinting at coordinated attacks. With Kwon’s trial set for January 2026, authorities continue to investigate including unlocking evidence from mobile devices. This complex case highlights regulatory and legal challenges faced by cryptocurrency leaders.
Neutral
The news highlights ongoing legal challenges and unresolved issues within the crypto market related to the Terra ecosystem collapse. While the case against Do Kwon progresses, no new significant evidence presenting a direct market impact has emerged, rendering the immediate effect neutral. However, allegations involving larger entities like DCG and FTX may lead to future market reactions once more details are uncovered. Traders are likely to adopt a cautious stance until clarity on these investigations is achieved.