Terra Luna Crash
About Terra Luna Crash
Terra Luna was a cryptocurrency ecosystem worth 60 billion at its peak in April 2022. The TerraUSD stablecoin, supposed to maintain 1 dollar value, lost its peg in May 2022 and crashed to near zero. The sister token Luna went from 120 to 0.00001 in days. Founder Do Kwon denied the ecosystem was collapsing even as it imploded. The crash triggered a broader crypto contagion, contributing to the bankruptcies of Celsius, Three Arrows Capital, and Voyager. Kwon was arrested in Montenegro in March 2023 and faces extradition to both the US and South Korea. The Terra Luna crash was the largest single cryptocurrency failure in history.
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