Interpol issues a notice to all countries of the arrest of South Korean Do Kwon, founder of Terraform Labs.
Terraform Labs is the company that
developed the UST coin, which was supposed to be a digital
currency equivalent to the in a 1:1 value, relying on a system dollar of algorithms and arbitrage to maintain the stability of the currency.
The UST coin was linked to the LUNA coin, and when it lost part of its value by $1, a sufficient number of them would be bought to recover its value using the Luna coin.
And when it was more than $1 in value, Luna would be bought against UST to recover the value again. And of course, the coins were burned. Those who buy it, whether UST or LUNA, maintain the balance of the supply.
In May, the currency began to come under an organized attack by some investors to devalue its UST through massive selling of the currency.
The institution started printing the LUNA balance to buy the dollar to maintain the stability of the currency price.
The attack was on a huge level, so the institution began to withdraw from its reserves of other currencies to defend the currency.
The institution used to own 80,000 bitcoins..of course, it sold huge quantities to buy UST in an attempt to preserve its value.
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