13/05/2022
Luna founder’s wife under emergency protection after market death spiral plunges coin to $0
As TerraUST founder Do Kwon fought to salvage the failing stablecoin, his wife reportedly sought police protection in the latest blow to a cryptocurrency some fear may trigger a “Lehman moment” for the market.
On Friday, South Korean media outlet MoneyToday wrote an unidentified person broke into her apartment building, rang the doorbell to ask if Kwon was home, before leaving the premises after she said he wasn’t.
Kwon’s wife has now been provided with security after she requested emergency protection, police in Seoul’s Seongdong-gu district told Forkast.
The developments come amid a wipeout in the value of Luna, a coin that served to prop up and maintain TerraUST’s dollar peg.
Some who had owned Luna posted on Reddit that people were suicidal after losing everything.
Kwon, who developed a reputation for belittling and attacking critics of his project, has now been likened to Elizabeth Holmes, found guilty of fraud for her Theranos deception.
was designed to trade at a one-to-one ratio to the greenback, but without some form of actual collateral that should underpin its value, as is the case with Tether.
Instead it employed an algorithmic process of creating and then destroying its very own supply of coin, which served as a kind of shock absorber.
Read More :
The fallout from the collapse of dollar peg and hyperinflation in Terraform Labs native Luna token propping up Terra UST continue as company fails to maintain the network after a restart.
