Speculators lose 40 billion euros from cryptocurrency

Cryptocurrencies are a double-edged sword because they offer both opportunities and great risks. The founder of a cryptocurrency is now wanted with an arrest warrant.

Gamers regularly argue about how useful or safe cryptocurrencies are. Meanwhile, such “coins” are also integrated into various games, often to the displeasure of the community.

An arrest warrant is now being sought in South Korea for a person behind a major cryptocurrency. It is not worth a cent today and is said to have caused losses of around 40 billion euros.

Crypto Bank Misses $1B, Shuts Down – “I Managed to Ruin My Life”

Do Kwon is behind cryptocoin, which today isn’t worth a dime

Who is the person you are talking about? Do Kwon co-founded Terraform Labs with several other people. Together they created the currency TerraUSD, a cryptocoin.

The TerraUSD currency attracted customers with a strong promise: Those who invested their currency in TerraUSD should collect a return of 20%. Unsurprisingly, this attracted many users who invested their money there.

TerraUSD also lured with the security of a stablecoin. These are currencies that are linked to real assets and thus promise a high level of security (via finanztip.de).

What exactly happened then? The currency then crashed in May. First lightly and then in free fall. Today a single coin is not worth a cent. That’s only a fraction of what you got for a coin a year ago.

What was an additional problem? Cryptocurrencies are often closely intertwined. New currencies are based on stable currencies that are already recognized in the market. With the demise of TerraUSD, other coins pegged to TerraUSD also collapsed. It is said to be about monetary values ​​​​of over 40 billion euros. Bloomberg says it’s a $60 billion crash overall (via bloomberg.com).

For example, the Viking game “Northern Guild” had invested its entire fortune in the Luna coin, which also collapsed with TerraUSD:

Viking MMORPG dies – developers put around €800,000 in cryptocurrency, which today is not worth a penny

Cryptocoin inventor is among the most disliked people in South Korea

In the meantime, the South Korean authorities have issued an arrest warrant for Do Kwon and five other people behind the company Terraform Labs. According to the authorities, he is said to have violated capital law. In addition, it is about illegal fundraising. In the USA, too, attention has been drawn to him and Kwon is in his sights.

But even before the arrest warrant was issued, Kwon had fled to Singapore and stated in an interview that he probably would not return to South Korea. According to the online magazine PC gamers the crypto crash had caused a number of suicides in South Korea and he is one of the most unpopular people in the country.

However, his stay in Singapore has one “disadvantage”: Since South Korea and Singapore have not signed an extradition agreement, an arrest in Singapore could be difficult.

Other crypto inventors are also currently on the run: The police have now caught a person who is said to be responsible for losses of more than 2 billion euros. You can read about the exact background and what is behind the long prison sentence of 40,000 years here on MeinMMO:

Crypto criminal jailed for more than 40,000 years – Allegedly stole over 2 billion euros

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