Binance is getting rid of LUNC futures

Cryptocurrency Exchange Binance warned users about the need to close positions on the Terra Classic perpetual futures contract (LUNC). As prosecutors fight to extradite Do Kwon, the platform has made the decision to adjust leverage and margin levels and then remove the token from the listing.

Binance cuts ties with Do Kwon

Binance will automatically close all open positions on the USD-M 1000LUNCBUSD Perpetual Contract at 09:00 UTC on June 8th. To avoid liquidation, traders are advised to reduce their margin positions in accordance with the exchange’s new rules.

LUNC is the native token of the Terra Classic blockchain created by the infamous Do Kwon. Once one of the largest cryptocurrencies by market capitalization with a historical maximum of $119, fell into a “death spiral” along with the algorithmic stablecoin Terra USD (UST) and lost almost 100% in price.

Prior to this, Binance and rival exchanges Huobi, Coinbase, and OKX have heavily invested in the Terra ecosystem.

Changpeng Zhao warned the industry about Terra’s problems

Recently, Binance CEO Changpeng Zhao took part in the Bankless podcast and toldthat right before the collapse of Terra, several key industry players sounded the alarm about the possible collapse of LUNC to no avail. Among those who noticed that something was wrong with Do Kwon’s project were Zhao himself, Paxos director Charles Cascarilla and hedge fund manager Kevin Zhou.

Recall that Do Kwon was arrested in March 2023 at the airport of Montenegro, having charged him with forging a passport. The prosecutor’s office is asking the court to extend the detention terms for Kwon and his business partner, as they fear they will flee the country. At the same time, the authorities of South Korea and the United States are trying to extradite Kwon, since they have already brought against him and other employees of Terraform Labs various charges of fraud and illegal sale of securities under the guise of LUNA tokens.