As TerraUST founder Do Kwon fought to save the failing stablecoin, his wife reportedly sought police protection in the latest cryptocurrency hit, fearing it could trigger a “Lehman moment” for the market.
On Friday, South Korean outlet MoneyToday wrote that an unidentified person broke into his apartment building, rang the doorbell to ask if Kwon was home, before leaving the premises after saying he wouldn’t. was not.
Kwon’s wife has now been protected after requesting emergency protection, police from Seoul’s Seongdong-gu district told Forkast.
The developments come amid an annihilation in the value of Luna, a coin that has served to underpin and maintain TerraUST’s dollar peg.
Some investors who had owned Luna posted on Reddit that people were suicidal after losing everything.
Kwon, who has earned a reputation as denigrate and attack critics of her project, has now been compared to Elizabeth Holmes, convicted of fraud for her Theranos deception.
TerraUST was designed to trade at a one-to-one ratio against the greenback, but without some form of real collateral that should underpin its value, as is the case with Tether.
Instead, he used an algorithmic process of creating and then destroying his own supply of Luna parts, which acted as a sort of shock absorber.
14/ Terra’s return to form will be a sight to behold.
We’re here to stay. And we’re gonna keep making noise.🌕
— Do Kwon 🌕 (@stablekwon) May 11, 2022
When the peg started to fail, the protocol was designed to stabilize the value through more Luna’s hitting – only the sustained attack meant she was suddenly being created at an exponential rate.
The latest indications suggest that the circulating supply of Luna coins has grown from a few hundred million to now 6.9 trillion, with the token trading at virtually zero levels after hitting an all-time high of $119 in the month. latest.
Besides Do Kwon going down, is there going to be any accountability had for those who mega-shilled the greatest ponzi in crypto history?
If everyone just continues on like nothing happened then we're just going to repeat the same mistakes again.
— sassal.eth 🦇🔊🐼 (@sassal0x) May 12, 2022
As Luna’s supply skyrocketed into Zimbabwe’s hyperinflation levels, leading global crypto exchange Binance delisted Luna on Friday in what some are now calling the “Luna Brothers moment” in reference to the 2008 collapse of Wall Street investment bank Lehman Brothers.
The move sparked speculation that BlackRock and Citadel may be behind it, and prompted the crypto exchange Gemini denies speculation he had played no part in an attack on the ankle.
Citadel spokesperson subsequently contacted Fortune to deny the allegations: “Citadel was not involved in this situation and does not trade stablecoins, including Terra UST.”
Ran Neuner, a South Africa-based crypto YouTuber, told Bitcoin influencer Layah Heilpern that he faces the consequences of being “absolutely irresponsible for a long time” at Luna.
He argued that the collapse of a Tier 1 coin on par with an Ether or Ripple XRP – valued at $20 billion and supporting a larger $60 billion ecosystem built on top of it – was without previous and would drive the digital asset bear market for much longer.
“There has never been an event in crypto where $80 billion has been wiped off the market, ever,” he told her in a webcast. “A lot of people have lost a lot of money on Luna…and they are crypto believers.”
Next to a plan presented by Kwon on Wednesdayhis company Terraform Labs attempted to resume normal operation on the blockchain network on Thursday, only to abort the attempt after only 4,089 new blocks were added to his chain.
The Terra blockchain has officially halted at block 7607789.
Terra Validators have halted the network to come up with a plan to reconstitute it.
More updates to come.
— Terra (UST) 🌍 Powered by LUNA 🌕 (@terra_money) May 13, 2022
This article has been updated to include a statement from Citadel.
This story was originally featured on Fortune.com