The news rocked the cryptocurrency ecosystem, and many affected LUNA holders are yet to recoup their losses.
Terraform Labs co-founder Do Kwon has reportedly been arrested in Montenegro, months after he disappeared following the explosion of Terra (LUNA) and its algorithmic stablecoin UST. do kwon was arrested shared Through a tweet by the country’s Interior Minister, Filip Adzic.
In the past year, Do Kwon was declared one of the world’s most wanted men by Interpol. Ongoing A red notice for his arrest. Authorities in South Korea, Singapore and even the United States have launched direct investigations into the activities surrounding the collapse of Terraform Labs and the first iteration of Luna.
The UST decline was the birth of the yet-to-be-explained crypto winter that continues to plague the digital currency ecosystem. With the collapse at the time, estimated losses were pegged at around $40 billion as Luna’s market capitalization was wiped out. LUNA was on its way to being one of the top 10 largest cryptocurrencies in the world at the time.
According to Adzik’s tweet, the identity of the man arrested has not yet been fully confirmed, despite the assumption that it was Doo Kwon.
“Montenegrin police have detained a man suspected to be one of the most wanted fugitives, a South Korean national, co-founder and CEO of Singapore-based Terraform Labs,” Adzic said in a tweet, according to a Google translation of his words. ” The minister said that;
The “former” crypto king, who is behind the loss of more than $40 billion, was detained at Podgorica airport with false documents, and South Korea, the USA and Singapore are seeking the same. We await official confirmation of the identity.”
The news rocked the cryptocurrency ecosystem, and many affected LUNA holders are yet to recoup their losses.
After Do Kwon’s Luna Fall
The collapse of both LUNA and UST was cited as one of the major crashes that led to the bankruptcy of some of the leading startups in the industry. The first firm to be busted was crypto lender Celsius Network, while hedge fund Three Arrows Capital (3AC) and brokerage firm Voyager Digital also went down the rabbit hole last year.
The broad interconnectedness of the events behind the collapse of the blockchain protocol goes even further. ftx derivatives exchange Admission At the end of last year for bankruptcy. LUNA’s connections and exposure also pulled in Genesis Trading, a subsidiary of Digital Currency Group (DCG), which filed for bankruptcy earlier this year.
While these events are a direct result of LUNA’s detonation, the wider phenomenon has also drawn intense scrutiny from regulators and lawmakers. Since that time, several regions, including Japan, have modified their laws regarding stablecoins to further protect customers.
Benjamin Godfrey is a blockchain enthusiast and journalist who loves to write about real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies drives his contributions to well-known blockchain-based media and sites. Benjamin Godfrey is a lover of sports and agriculture.
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