The Terra crash is primarily perceived as a disaster for the crypto market. Some speak of a failed experiment, others of a scam. Over $38 billion was wiped out in a week. But according to the BBC, around 250,000 people have invested in Terra, many of them in South Korea – and large sums. The crash is therefore also a human tragedy.
LUNA crash destroyed the lives
Its dimensions are slowly becoming visible. More and more people are sharing their fate in media reports and social media. Their life was turned upside down in one fell swoop. Families break up, victims become depressed and contemplate suicide. Some are banding together for a class action lawsuit against Do Kwon, the founder of Terra. The South Korean authorities are also planning steps against him.
“I felt like I was dying”
According to LKB & Partners, many cheated crypto investors are in debt as a result of the crash. The law firm is conducting a class action lawsuit against Terra involving over 1,700 people. “Most investors were in their 30s and 40s and lost their retirement savings,” according to Kim Hyun-kwon an attorney for the firm.
A South Korean Crypto Streamer Lost Nearly $1 Million reports the BBC. He knocked on Do Kwon’s door, wanted to confront him – and was taken away by the police. “I felt like I was dying,” he says of the crash moment. You can find out all the background information about the Terra (LUNA) crash here.
“It was my whole family’s money, saved up for years”
“I am a single mother of two from Ukraine. The money was my safety net,” one woman wrote in a statement to the Terra Research Forum, a Terra analytics platform. Over 100 victims of the crash reported there. They all had invested their fortunes in Terra’s popular DeFi platform, Anchor, which promised 20 percent interest – and the greatest possible security.
“Our own currency is unstable because of the war. I just wanted to save money,” says the Ukrainian. “It was my whole family’s, saved up for years.” Now she is afraid that she will no longer be able to take care of her children. “I’m ashamed that this happened to me.”
On average, it took victims three years to accumulate their invested assets, according to statistics from the Terra Research Forum, shared by a member named FatMan. They lost it within a week. Almost half of the victims who have come forward struggle with suicidal thoughts. On Reddit, the Suicide Hotline was temporarily at the top of the Terra forum.
A few days before the crash, Terra founder Do Kwon tweeted, “I love chaos.”