Luna Founder’s Wife Under Emergency Protection After Crypto Market Death Spiral Plunges Coin to $0

As TerraUST founder Do Kwon struggled to save the failing stablecoin, his wife reportedly sought police protection in the latest blow to a cryptocurrency some fear could trigger a “Lehman moment” for the market.

On Friday, South Korean media outlet MoneyToday wrote that an unidentified person broke into her apartment building, rang the doorbell to ask if Kwon was home, then left the premises after she said no.

Kwon’s wife now has security after she applied for emergency protection, police in Seoul’s Seongdong-gu district told Forkast.

The developments come amid a drop in the value of Luna, a currency that served to prop up and maintain TerraUST’s parity with the dollar.

Some investors who had owned Luna posted on Reddit that people were committing suicide after losing everything.

Kwon, who developed a reputation for put down and attack critics of her project, she has now been compared to Elizabeth Holmes, found guilty of fraud for her Theranos hoax.

TerraUST was designed to trade at a one-to-one ratio to the dollar, but without some form of collateral to back its value, as is the case with Tether.

Instead, it employed an algorithmic process of creating and then destroying its own supply of Luna coins, which served as a buffer of sorts.

When the peg began to fail, the protocol was designed to stabilize the value by minting more Luna; just the sustained attack meant that it was suddenly being created at an exponential rate.

The latest indications suggest that the supply of Luna coins in circulation has gone from a few hundred million to now 6.9 trillion, with the token trading at virtually zero levels after hitting an all-time high of $119 last month.

With Luna’s supply reaching hyperinflation levels in Zimbabwe, Binance, the world’s leading crypto exchange, delisted Luna on Friday in what some are now calling the “Luna Brothers moment” in reference to the 2008 collapse of Wall Street’s investment bank. Street, Lehman Brothers.

The move sparked speculation that BlackRock and Citadel might be behind it and sparked the crypto exchange. Gemini to deny speculation had played some role in an attack on the peg.

A Citadel spokesperson later contacted Fortune to deny the allegations: “Citadel was not involved in this situation and does not trade stablecoins, including Terra UST.”

Ran Neuner, a South African-based crypto YouTuber, told Bitcoin influencer Layah Heilpern that he was dealing with the fallout from being “absolutely irresponsibly long” on Luna.

He argued that the collapse of a tier 1 coin on par with Ether or Ripple XRP, valued at $20bn and supporting a broader $60bn ecosystem built on top, was unprecedented and would drag down the market. bearish on digital assets for much longer.

“There has never been an event in crypto where $80 billion has been taken out of the market, ever,” he told her in a webcast. “A lot of people lost a lot of money on Luna…and these are crypto believers.”

Following a plan presented by Kwon on Wednesdayhis company Terraform Labs attempted to resume normal operation on the blockchain network on Thursday, only to later abort the attempt after only 4,089 new blocks were added to its chain.

This article has been updated to include a statement from Citadel.

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