History of Terra, the cryptocurrency that has been pulverized 60 billion in capitalization disappeared into thin air and investors on the pavement due to the collapse of the project, based on a system of two cryptocurrencies, TerraUSD and Luna, linked together Seoul's Southern District Prosecutor's Office also said it had asked the country's foreign ministry to cancel Kwon's South Korean passport as "obviously on the run". Through his lawyer, Kwon denied that he was on the run, specifying only that he did not intend to "respond immediately" to requests from the authorities.
Thirty-year-old from Seoul and well known in the cryptocurrency environment, Do Kwon is at the center of the biggest collapse ever recorded by a company active in the cryptocurrency sector, when Terra - his blockchain project last May born in 2020 - it suddenly became pulverized, irreparably collapsing the two cryptocurrencies that made it its pillar, Earth and Moon. The Earth-Moon stablecoin, which anchored its value to a complex calculation ratio between two crypto-parallels, began to lose value last April due to a general market crash. This initial decline was followed by a real spiral, which in a few weeks effectively eliminated the value of the project. Losses to investors are estimated to be as high as $ 40 billion, and there are several investors who claim they have lost all their savings.
However, it is not just the financial loss that is relevant. Terra was in fact among the most highly rated projects in the sector and was considered a spearhead in the DeFi: decentralized finance (loans, financing and more) based on blockchain.