The wife of Terraform Labs CEO Do Kwon, responsible for cryptocurrency LUNA and stablecoin UST, which collapsed, sought police protection after alleging that an as-yet-unidentified individual broke into her building in South Korea.
Terra’s founder’s wife asks for police protection
To the Seongdong-gu district police in Seoul, Kwon’s wife requested emergency protection claiming that the episode would threaten the physical integrity of her family. According to authorities, security has been made available for the couple.
Police reports revealed that an unidentified individual allegedly entered the apartment complex located in Seongsu-dong after waiting for a resident to open the gate with a code.
After gaining access to the site, the individual rang the bell and knocked on the door of Kwo’s house. Then, when the woman answered, the individual reportedly asked if Kwon was available and left “threateningly” when she responded in the negative.
The wife reportedly told police that the location of her private residence was made public after the UST issues caused the cryptocurrency market to take heavy losses and Terra (LUNA) to lose 99.99% of its value.
In addition, police said they were trying to track the individual down for possible home invasion charges.
The episode comes as Kwon finds himself embroiled in controversial allegations after some media dubbed the “Lehman Brothers of cryptocurrency”.
Terraform Lab’s TerraUSD (UST) lost its peg to the US dollar earlier this week and dropped to $0.04 this Friday morning. The algorithm-based stablecoin has lost around $16.6 billion in market value.
To try to calm the market and solve the problem, the company tried to peg the UST to the dollar, supporting it on LUNA. But LUNA’s offer increased 20-fold in four days.
Since then, supply has increased to 6.91 trillion from 775.69 billion as of May 10, according to data from Terrascope, a tool created to track the Terra Money ecosystem.
The supply increased as UST holders converted the stablecoin to LUNA to sell it on the open market. This increased the token supply, pushing the token price even lower. Consequently, this created a vicious cycle. After all, UST holders had to redeem even more LUNA than before.
In response, Binance, the world’s largest cryptocurrency exchange, said it will withdraw several trading pairs linked to UST and LUNA.