Investors continue to trade the LUNA token despite its huge drop, seeing the coin lose 99% of its value from $62 on May 9 to less than a penny on May 14. HoweverAs of May 20, LUNA remains the most searched cryptocurrency on CoinMarketCap.
With a market capitalization of $918 million, LUNA is trading at $0.00013 per coin. The coin has gained 1% in the last 24 hours and 75% in the past week.
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It is worth noting that even though the price of this cryptocurrency had fallen sharply in recent days and South Korean officials were looking to penalize its inventor for $78 million in tax evasion, we see the coin trending lower. higher than ever.
South Korean authorities are investigating why the value of Terra’s dollar-pegged stablecoin, UST, lost its peg on May 9. The market for this coin quickly crashed in four days. As a result, the stablecoin lost $18 billion. This affected not only the UST stablecoin, but also all the networks built on top of it, such as LUNA, whose price plummeted from $62 per coin to a fraction of a cent.
Tax authorities fined LUNA founder for tax evasion
To investigate, both South Korean regulatory bodies, the Financial Supervisory Service and the Financial Services Commission called on local cryptocurrency exchanges to submit transaction data.
Information requested from local exchanges includes the trading volumes of LUNA and UST, as well as the number of investors who suffered losses because their investments decreased during this time period.
On the data request, a local exchange operator, Yonhap, said;
It appears that they collected this information to minimize damage to investors in the future.
The Korea National Tax Service found that Terra’s parent companies have avoided paying corporate and income taxes. The company moved LUNA from its software firm, Terraform Labs, to Singapore’s Luna Foundation Guard (LFG) to avoid paying taxes.
The tax department fined Do Kwon $78 million for buying and selling $3 billion worth of Bitcoin LFG. Also, the inventor of Terra could face more fines from the tax department.
The NTS requested that Do Kwon and Daniel Shin pay $100 million in taxes in December. However, the two men refused as their company, Terraform Labs, is based in Singapore. The NTS argues that all of Terraform Lab’s operations are controlled from South Korea, but the two men maintain that their business is primarily conducted in Singapore.
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Also, just a few days before Terra’s collapse, Do Kwon attempted to disband Terra’s Korean entities. There is speculation among viewers as to how long before the chain collapsed, Do Kwon had been prepared for Terra’s fall.
Terra’s founder is being sued by 200,000 people in Korea who invested in LUNA or UST.
Featured image from Flickr, and chart from Tradingview.com