Cryptocrash: ‘I was arrested for knocking on Luna boss's door'

Image source, News1

The collapse of two popular digital coins in early May wiped out $400 billion from the value of other cryptocurrencies. People who lost their life savings are looking for help. One desperate man was arrested after visiting the home of the elusive businessman at the center of thecryptocrash. He told the news that his life was over.

In the volatile world of cryptocurrencies, fortunes can be made and lost quickly, but the May 22nd, 2022, crash has been particularly devastating for one man in South Korea.

The streamer known as Chancers says he felt like he was going to die. The value of mycryptocurrencies was wiped out.

Chancers became wealthy in the past five years as the value of digital coins rose, and he has been investing in cryptocurrencies since the beginning of the year.

I was in the top 1% of my finances in Korea. He told the news that he was now in trouble because of the crash.

The chancers invested $800,000 of their money in a digital token called Terra Luna.

The value of each coin went from $5 to a high of $116 in April this year.

Chancers made a big bet on the coin rising further.

It collapsed in 48 hours, losing 99% of its value.

The Terra Luna coin is worth less than two hundredths of a cent.

TerraUSD lost value, which started the fall of Terra Luna.

TerraUSD is a stable coin that is supposed to avoid major fluctuations in value. The companies behind stable coins try to keep their token equal to the US dollar, for example.

When TerraUSD's value plummeted, a panicked sell-off began and Terra Luna nosedived.

Billions of dollars were pulled out of other digital currencies as a result of the implosion.

Do Kwon is the man who invented the Terra system and who is at the center of the chaos.

Thousands of people turned to the 30-year-old on social media for answers and a plan to rescue the situation.

Chancers decided to go a step further.

He searched online and found the home address of the crypto millionaire, who was angry with the lack of communication.

I wanted to ask him about Luna. I suffered a huge loss and wanted to talk to him.

The streamer went to his home city and knocked on the door.

He streamed the event to about 100 people who were watching his online AfreecaTV channel.

He was disappointed when the wife said her husband was out.

He was arrested as the police were notified.

Local media captured the moment he arrived at the police station.

According to Korean law, it is illegal to just go there and try to talk. I did not know.

He will most likely face a fine and a criminal record that will make his life difficult.

He says it is hard and he is being investigated by the police. I may not be able to return to the civil service if I am convicted of this case.

In Korean culture, the problem is not important but the fact that it caused a scandal. I had to publicly apologize for my actions. I didn't know this would be so big. It is very sad.

Image source, News1

Chancers regret trying to speak to Mr Kwon, but say that the bosses of cryptocurrencies are not being held accountable for failed projects that affect so many people.

It is thought that over twenty thousand people had invested in the Terra coins.

During and after the collapse of the coins, the chancers accused Mr Kwon of not communicating enough. He now describes them as a scam.

The collapse of the Terra coins has not made any money for Mr. Kwon or his company.

South Korean police said they were investigating his business, Terraform Labs, with local news outlets reporting the Financial and Securities Crime Joint Investigation Team was focusing on the coins downfall.

Mr Kwon was behind another failed coin, Basis Cash.

He told a YouTube channel that most of the coins are going to die, but there is also entertainment in watching companies die as well.

Just before his $60 billion creation began to fall apart, he wrote on the social networking site: "I love chaos."

Over the next three days, he launched plan after plan to rescue the coins, urging the Terra community to hang tight and stay strong.

He conceded the rescue had failed on 13 May, saying he was "heartbroken about the pain my invention has brought on all of you."

The Terra Luna coin was resurrected by Mr Kwon.

His approach has been criticized by prominent figures in the community.

Changpeng Zhao, chief executive of the company, described the plan as "wishful thinking".

Billy Markus, co- founder of popular criptocurrency Dogecoin, recommended that they stop trying to bring in new victims and leave the space forever.

Neither Mr Kwon nor Terraform Labs responded to questions.

Additional reporting by the Korean Broadcasting Corporation.