On 11th and 12 May 2022, the crypto market saw something which no one had ever anticipated in the market. A stablecoin UST and LUNA project was created by a South Korean developer Do Kwon in his office in the capital Seoul. The market saw an abrupt change in its pricing, and the LUNA coin went from 120 dollars to $0.02 in a span of only 48 hours. It did not stop here and crashed further by 99%, but things were not looking good, and it dropped 90% more and stopped at $0.00000112 against BUSD (Binance USD).
This was a shocker to the overall crypto market, and everyone was bewildered. Most crypto exchanges abruptly delisted the coin from their platform. In a span of a few hours, the news was a headline on social media. According to the keyword tool Ahrefs, more than five hundred people searched “what is Terra,” and some searched “why Terra crashed.” Many people lose their investments and life-saving money. The South Korean government took things into its hand and started an investigation against the co-inventor Do Kwon.
Do Kwon stance
After the news surged on social media and the internet that the South Korean authorities are after the Terra LUNA co-inventor Do Kwon, he told crypto media startup Coinage that the Korean authorities do not seek him and he will soon return from Singapore to South Korea because he was staying there in the time of Terra crash. He said that no one asked him, and there was no charge against him. He further said he is aware of the consequences of this crash on the market and will soon find a way out.
Start of Investigation
But things were not as simpler as Do Kwon thought. The authorities seized more than 15 firms in mid-July and similarly 7 different crypto exchanges for their alleged involvement in the collapse. The authorities were actually after him because the crash affected millions of lives around the world and the whole crypto market. The authorities first raided the house of Terra LUNA co-founder Daniel Shin and alleged him of illegal activities behind the collapse of the Terra LUNA. Then the South Korean authorities turned toward co-inventor Do Kwon.
When he was about to return to South Korea, the South-Korean authorities started investigations against Do Kwon in mid-June 2022. The authorities look after the causes of the collapse and confirm whether the co-founder and co-inventor have any hand in this collapse. They also started an investigation to prove whether this was preplanned or it just happened like any other crash in the crypto market.
After months of investigation, the South Korean court issued an arrest warrant against Do Kwon, Bloomberg reports. The arrest warrant was issued by a court in a text message in Seoul against Do Kwon and five others. However, it has been five months since Terra LUNA collapsed and millions of dreams with it as well. The authorities have given ample shreds of evidence against Do Kwon and those that have been involved in this case. The arrest of Do Kwon is finally here.
Future plans by South Korea and other countries
The collapse affected so many lives around the world, and it cost more than 40 billion dollars to the crypto market. This was not an ordinary crash of crypto, so desperate measures were required to stop such collapses in the future. For this, a committee has been established by South Korean authorities to prevent such crashes in the future. Similarly, the international crypto community is also trying to make such a committee avoid Terra-like incidents.
The Terra LUNA crash was one of the most devastating in the history of crypto. It cost the overall market more than 40$ billion. However, the authorities have taken very stiff actions against those who were involved in it. Additionally, the authorities have also made a commitment to prevent further devastation in the future.