As soon as Do-Kwon came up with the recovery plan, the criticism followed strongly. Moreover, some went a step ahead and filed a lawsuit in the wake of heavy losses incurred by the investors due to UST de-peg. Investors have filed a lawsuit against the founder Do-Kwon and Daniel Shin. On the other hand, the South Korean Regulators have rolled out a mandate to the exchanges to freeze the assets linked to LUNA Foundation Guard (LFG).
Exchanges include Upbit, Bithumb, Coinone, Korbit, and Gopax, where authorities will meet these exchanges on May 25, 2022. liability for losses. However, exchanges have no legal obligation and can only consider and comply with the warrant and request of the police.
On the other hand, LUNA price faces a huge rejection at the moment, while the projects running on Terra blockchain thrive.
The LUNA price since the monstrous spike a couple of days after the crash dropped hard into a steep bearish well. Moreover, despite the recent events of a significant spike, the price failed to break through the downtrend line. However, from the early trading hours, the bears appear to have regained a significant dominance that may eventually restrict the price below $0.0002 for quite a long time.
On the other hand, the UST gained noticeable bullish momentum which brought the price closer to $0.1. Despite a strong rally, the price is still within reach for the bears, as the bulls may have held back for now. And as the icing on the cake, if the exchanges freeze Terra’a assets, then it can be extremely difficult for the price to find a bounce and can also end up being hurt.
