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DeFi and Credit Risk

An investor is being investigated for visiting Do Kwon's home

A big number of investors have been wiped out by the collapse of cryptocurrency terra (LUNA) and stablecoin terrausd (UST). Kwon Do-hyung (aka Do Kwon), the CEO of Terraform Labs, the company behind the two cryptocurrencies, was approached by one investor who wanted clear answers.

The investor, who goes by the handle "Chancers," is a Korean social media star who hosts streams about bitcoin. In the LUNA and UST collapses, he lost roughly 3 billion won ($2.4 million). He told the BBC:

"I thought I was going to pass out. In a short amount of time, I lost a lot of money. My cryptocurrency was wiped out to the tune of $2.4 million."

He expressed his dissatisfaction with Do Kwon's lack of communication when LUNA and UST went into freefall. He then looked out Kwon's address in Seoul on the internet.

Chancers remarked, "I wanted to ask him about his ambitions for LUNA." "I was devastated and wanted to speak with him directly."

On May 12, the disgruntled investor drove across his hometown and knocked on Kwon's door. He broadcast the event live on his YouTube channel, with roughly 100 people tuning in.

After ringing Kwon's condominium doorbell, his wife opened the door and said her husband was not there. She also contacted the cops, but when they arrived, Chancers had already left the building.

The next day, the investor learned that the police were looking for him. On the morning of May 13, he surrendered to the Seongdong Police Station in Seoul.

"I went to the police station twice," Chancers insisted, adding, "I didn't trespass on Do Kwon's land, but it's prohibited under Korean law to just walk there and try to communicate." "I had no idea."

Chancers informed the news organization that he expects to face a fine and a criminal record, both of which might make life tough for him. He stated:

"It's quite difficult. I lost a lot of money, and now the cops are looking into it. In Korea, I began my career as a civil servant. However, if I am found guilty in this matter, I may be unable to return to the civil service."

"The problem itself is not important in Korean society," he added, "but the fact that it produced a scandal is." "I had to publicly apologize like a sinner." I had no concept how enormous this was going to get. It's heartbreaking."

The police announced on Wednesday that they had completed their investigation and had referred the matter to the prosecution, recommending that he be indicted.

Do Kwon claims to have been in Singapore since late December. However, just days before LUNA and UST fell, he dissolved Terraform Labs Korea and closed the company's Korean headquarters.

The disintegration of the two coins has prompted South Korean authorities to begin an emergency inquiry. Korean authorities requested that the Luna Foundation Guard's assets be frozen this week.

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