Investors continue to trade the LUNA token despite its big drop as the coin loses 99% of its value from $62 on May 9 to less than a cent on May 14. However, as of May 20, LUNA remains the most sought-after cryptocurrency. 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 last week.
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It is worth noting that while the price of this cryptocurrency has dropped sharply in recent days and the South Korean authorities are looking to penalize its inventor $78 million in tax evasion, we see the coin trend lower, higher than ever before. .
South Korean authorities are investigating why the value of the Earth dollar-pegged stablecoin, UST, lost its peg on May 9. The market for this currency quickly dropped in four days. As a result, the stablecoin lost $18 billion. This affected not only the UST stablecoin, but also all networks built on it, such as LUNA, whose price dropped from $62 per coin to a fraction of a cent.
LUNA is currently trading at $0.00013 up 1% | Source: LUNA/USD price chart from Tradingview.com
Tax authorities fine LUNA founder for tax evasion
To investigate, South Korean regulators, the Financial Supervision Service and the Financial Services Commission asked 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 declined during this period.
Regarding the data request, a local exchange operator, Yonhap, said;
It appears that they collected this information to minimize the harm to investors in the future.
Korea’s National Tax Service found that Earth’s parent companies avoided paying corporate and income taxes. The company transferred LUNA from its software company, 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. In addition, the inventor of Terra could face more fines from the tax department.
NTS requested that Do Kwon and Daniel Shin pay $100 million in taxes in December. However, both men declined because their company, Terraform Labs, is based in Singapore. NTS argues that all Terraform Lab operations are controlled by South Korea, but the two men maintain that their business is primarily conducted in Singapore.
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Also, just days before Earth’s collapse, Do Kwon attempted to dissolve Earth’s Korean entities. There is speculation among viewers about how long before the jail’s collapse, Do Kwon was prepared for Earth’s fall.
The founder of Terra is being sued by 200,000 people in Korea who invested in LUNA or UST.