Currencies are a double-edged sword, as they offer both opportunities and great risks. The founder of a cryptocurrency is now being sought under an arrest warrant.
Gamers regularly argue about how sensible or safe cryptocurrencies are. Meanwhile, such “coins” are also being integrated into various games, often to the dismay of the community.
Now in South Korea, a person is being sought under an arrest warrant who is behind a major cryptocurrency. It is now worth not a cent and is said to have caused losses of around 40 billion euros.
Do Kwon is behind the cryptocurrency that is now worth not a cent
Who is it about? Do Kwon, together with several other individuals, founded the company Terraform Labs. Together they created the currency TerraUSD, a cryptocurrency.
The currency TerraUSD attracted customers with a strong promise: Those who invested their currency in TerraUSD should receive a return of 20%. Unsurprisingly, this attracted many users who invested their money there.
TerraUSD also attracted with the security of a stablecoin. These are currencies tied to real assets and therefore promise high security (via finanztip.de).
What exactly happened then? In May, the currency crashed. First slightly and then in free fall. Today, a single coin is worth not a cent. It is only a fraction of what one could get for a coin a year ago.
What was an additional problem? Cryptocurrencies are often closely intertwined. New currencies rely on stable currencies that are already recognized in the market. With the downfall of TerraUSD, other coins that were linked to TerraUSD also collapsed. It is said that the total amount involved is over 40 billion euros. Bloomberg explains that it is a 60 billion dollar crash (via bloomberg.com).
For example, the Viking game “Northern Guild” had invested all its assets in the Luna coin, which also collapsed with TerraUSD:
The cryptocurrency inventor is one of the most unpopular people in South Korea
Meanwhile, the South Korean authorities have issued an arrest warrant against Do Kwon and five other individuals behind the company Terraform Labs. According to authorities, he is said to have violated capital law. Additionally, it concerns illegal fundraising. The authorities in the USA have also taken notice of him and have Kwon in their sights.
However, already before the arrest warrant, Kwon had fled to Singapore and stated in an interview that he would probably not return to South Korea. According to the online magazine PCGamer, the crypto crash has caused numerous suicides in South Korea and he is one of the most unpopular individuals in the country.
However, his stay in Singapore has one “disadvantage”: Since South Korea and Singapore do not have an extradition agreement, an arrest in Singapore could be difficult.
Other crypto inventors are also currently in hot water: The police have now arrested an individual who is said to be responsible for losses of more than 2 billion euros. You can read the exact background and what lies behind the long prison sentence of 40,000 years here on MeinMMO:
Crypto criminal sentenced to more than 40,000 years in prison – allegedly stole over 2 billion euros
