The price of the LUNA token has crashed by more than 32%, according to CoinMarketCap data.
The sharp drop came after a South Korean court issued an arrest warrant against founder Do Kwon.
Kwon swiftly became one of the most influential names within the cryptocurrency industry, with two of his coins simultaneously occupying two spots in the top 10.
However, the project faced a very swift demise in May, losing virtually all of its value within a few days. The $60 billion implosion attracted attention from regulators, politicians, and big names in legacy financial markets.
During his only wide-ranging interview following the crash of the project, Kwon seemingly downplayed the possibility of facing jail time, simply replying that "life is long." He also signaled his intention to remain in the cryptocurrency industry despite suffering a huge reputational hit.
In May, Kwon launched Terra 2.0 to start his project from scratch without an algorithmic stablecoin. Earlier this September, the new LUNA token pumped by more than 200% within hours during a massive speculating frenzy. The massive price uptick was not driven by any bullish announcements.
LUNC, the token behind the old Luna Classic blockchain, also went on a wild rally because of a new token burn scheme that would reduce its gargantuan supply.
With Kwon now officially facing arrest, those who bought into the new Terra hype wave have been left in the dust once again.
However, given how the cryptocurrency market is completely divorced from fundamentals, one should not rule out that Terra may catch a third wind.