In June 2024, the$XRP

reached a $4.47 billion settlement with Terraform Labs and Do Kwon, finalized in September 2024 after a jury found them liable for securities fraud in connection with the Terra/Luna collapse. The breakdown included:

Terraform Labs: $3.59 billion in disgorgement, $467 million in interest, and $420 million in penalties.

Do Kwon: $110 million in penalties.

With interest, the total reached $4.55 billion, closely aligning with the often-cited $4.5 billion figure. Asset distributions remain tied to Terraform’s bankruptcy proceedings.

LUNC Token Context

Supply: Terra Luna Classic (LUNC), the rebranded post-collapse token, has an estimated circulating supply of ~6.49 trillion tokens as of mid-2025.

Hypothetical Burn: A one-third burn would equal ~2.16 trillion LUNC.

Past Token Burns

As part of the 2024 settlement and shutdown of Terraform operations, 275 billion LUNC and 1 billion USTC from Mirror/Anchor protocols were burned by October 31, 2024.

Ongoing mechanisms include a 0.5% transaction tax and Binance’s monthly burns (e.g., 1.7 billion LUNC in January 2025).

However, no single burn on the scale of trillions has ever been ordered

Bankruptcy Proceedings

Terraform’s bankruptcy plan, approved in September 2024, earmarked $184.5–442.2 million for creditors. Terraform’s available assets (about $75 million at filing) are far too limited to support a multi-trillion-token burn. No provisions in the plan mention a one-third LUNC burn.

Discrepancies

No New SEC Order: The June 2024 settlement is already active. As of September 27, 2025, no SEC filings, press releases, or credible outlets (Reuters, Bloomberg, etc.) report a new $4.5 billion order or a mandated LUNC burn.

Unprecedented Scale: A 2.16 trillion $LUNC

burn would wipe out over 33% of supply—far beyond historical burns (e.g., 68 billion via Binance, 383 million weekly via tax). Such action would require a court order or governance vote, neither of which exists in recent updates.