When Cryptocrash: ‘I was arrested for knocking on Luna boss's door'

In the volatile world of  cryptocurrencies, fortunes can be made and lost rapidly - but the May 2022 cryptography has been particularly devastating for one man in South Korea.

 

"I felt like I was going to die," the cryptocurrency streamer known as Chances says. "I lost a lot of money in a short period of time. Around $2.4m (£1.9m) of my cryptocurrency was wiped out."

 

Chancer has been investing in cryptocurrencies since 2017, and says he became wealthy in the past five years as the value of Bitcoin and other digital coins rose.

 

"Here in Korea, I was in the top 1% in terms of my finances. But thanks to the crash, I'm now in trouble," he told BBC News.

Terra Luna came to prominence in December 2021, when the value of each coin started rising - from $5 to a high of $116 in April this year.

 

Like many people, chances made a big bet on the coin rising further.

 

But then suddenly, on 9 May, it collapsed, losing 99% of its value in just 48 hours.

 

Now, each Terra Luna coin is worth less than $0.0002, or two-hundredths of a cent.

Terra Luna's fall began when its sister cryptocurrency, Terra USD, suddenly lost value, experts say.

 

Terra USD is a so-called "stablecoin" a cryptocurrency token supposed to avoid major fluctuations in value. The companies behind stablecoins try to ensure they remain in parity with assets such as the US dollar - with one token equalling $1, for example.

 

But when Terra USD's value plummeted, a panicked sell-off began and Terra Luna - algorithmically linked to Terra USD - simultaneously nosedived.

 

The rest of the cryptocurrency world watched the implosion in horror and pulled billions of dollars out of other digital currencies.

At the 'centre'of the chaos is Do Kwan, a notoriously news-media shy man who invented the Terra system both coins were built on.

 

Thousands of people turned to the 30-year-old on social media, looking for answers and for a plan to rescue the situation.

 

But in his desperation,chances decided to go a step further.

 

Angry with the lack of communication from Mr Kwan, he searched online and found the crypto millionaire's home address in Seoul.

 

"I wanted to ask him about his plans for Luna. I suffered a huge loss and wanted to talk to him directly," Chances says.

So the streamer travelled across his home city and knocked on Mr Kwan's door.

 

He also decided to share the potential confrontation with his viewers and streamed the event to about 100 people watching his online Freesat channel.Surrendered myself.

He was disappointed when Mr Kwan's wife answered the door,and she said her husband was out.

 

Worse was to come, as the police were alerted,and he was arrested.

 

Local media captured the moment he arrived at Seoul's sending Police Station for questioning.

 

"I surrendered myself to the police station twice," chances says. "I didn't trespass on Do Kwan's property - but according to Korean law.

Chancers says he will most likely face a fine and a criminal record that could make his life difficult.

 

"It's so hard," he says. "I lost a lot of money and now I'm being investigated by the police. I originally served as a civil servant in Korea - but if I am convicted of this case, I may not be able to return to the civil service again.

 

"In Korean culture, the problem itself is not important but rather the fact that it caused a scandal. I even had to apologise publicly as a sinner. I had no idea this would be so big. It's very sad."

 

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