A trial between the U.S. Securities and Exchange Commission and Terraform Labs, along with its founder Do Kwon absent from court, has seen Judge Rakoff criticizing both parties for veering off-topic during arguments.

Let's delve into the jury's preliminary instructions regarding the fraud lawsuit -

Preliminary Instructions and Allegations

Judge Rakoff laid out the SEC's claims against Terraform Labs and Do Kwon, accusing them of violating federal securities laws through fraudulent schemes involving Terraform securities like LUNA and UST (now USTC) coins. The SEC alleges that Terraform misled investors by falsely stating that Chai Corp, associated with Terra's co-founder, used TFL technology. Additionally, Terraform is accused of misrepresenting the stability of UST stablecoin, misleading investors about its value always pegging at $1.00.

Trial Dynamics and Implications

The trial has Terraform Labs defending civil fraud allegations that led to the collapse of TerraUSD stablecoin in 2022. On the other hand, Do Kwon, Terraform Inc.'s co-founder and co-defendant in the lawsuit, is not physically present at the trial due to being under house arrest in Montenegro.

It's natural for many to wonder about the potential impact of the trial on Terra Lab's tokens, specifically LUNA and LUNC prices -

Could the Trial Impact LUNA and LUNC Prices? A Closer Look at Price Predictions

Recent improvements in Terra Luna Classic, such as version 2.4.2 with IBC-Hooks, have driven LUNA token prices to a 7-day peak at $1.182606 per (LUNA / USD). Binance has burned over 105 billion LUNC tokens, potentially enhancing scarcity and value. However, a decrease in token burning coincides with price increases.

Despite this, the increasing demand as evidenced by a rise in LUNC wallet holders suggests a positive outlook for LUNC's future. Currently, LUNC is priced at $0.000161, with a market capitalization of $939.80 million and a circulating supply of 5.83 trillion LUNC. The Fear & Greed Index indicates extreme greed at 83.