In the global digital currency market, UST (TerraUSD) and LUNA (Terra) were once regarded as emerging star projects, attracting the attention of countless investors. However, with the collapse of the two, 200,000 investors in South Korea became victims, and the investigation of financial authorities was launched, revealing the story behind the financial storm.

The rise of UST and LUNA has brought hope to people. As an algorithmic stablecoin, UST promises to be pegged to the US dollar at a ratio of 1:1, and LUNA is the supporting asset behind it. The combination of the two has allowed many investors to see the possibility of high returns. Especially in 2021, with the popularity of the cryptocurrency market, the market value of UST and LUNA once soared, attracting a large influx of capital.

However, the current situation is shocking. In May 2022, the price of UST suddenly plummeted and failed to maintain its peg to the US dollar, followed by the collapse of LUNA. Data shows that LUNA's market value has almost returned to zero in just a few days, and investors' assets have vanished. According to a survey by South Korea's financial regulator, it is estimated that up to 200,000 South Korean investors were affected by the crash, with losses of up to trillions of won.

This crash not only caused huge financial losses to investors, but also attracted widespread attention from the society. Many victims expressed their disappointment and anger on social media, and some investors even chose extreme ways to solve their predicament because of huge losses. This situation can't help but make people reflect on how big the risk of digital currency is? In the process of chasing wealth, how can investors protect their assets?

The investigation of financial authorities is undoubtedly an important link. The Financial Services Commission (FSC) and the Financial Supervisory Service (FSS) of South Korea quickly launched an investigation into local exchanges, focusing on the compliance and transparency of these exchanges. Through the investigation, the financial authorities hope to find out the root cause of the problem and provide the necessary support and compensation to the victims. However, the complexity of the investigation and the urgency of time have made many victims more anxious.

As the investigation deepened, more and more details surfaced. Many investors blindly followed the trend without fully understanding the risks of the products, which eventually led to huge losses. Financial experts pointed out that the volatility of the digital currency market is extremely high, and investors must have basic risk identification capabilities and investment knowledge when choosing investment projects. Otherwise, if you believe in the market's propaganda and the recommendations of others, you may face tragic consequences.

In this disaster, the experiences of some victims are heartbreaking. A young investor said in an interview that he invested all his savings in UST and LUNA last year, expecting to get rich overnight. However, when the crash came, his dream was shattered in an instant, and the original bright future turned into a bubble. This emotional impact made him feel extremely desperate and even lost confidence in life.

At the same time, Korean society has begun to reflect deeply on the regulation of digital currencies. Many experts have called on the government to strengthen supervision of the digital currency market to prevent similar incidents from happening again. They believe that only by establishing a sound legal and regulatory system can the rights and interests of investors be protected and the stability of the market be maintained. At the same time, investors themselves need to enhance their risk awareness and look at investment opportunities in digital currencies rationally.

Looking back on this financial storm is not only a warning to individual investors, but also a deep reflection on the entire industry. In the process of pursuing wealth, investors need to be more cautious and do a good job of risk assessment. At the same time, financial institutions and regulatory authorities should also take responsibility to provide investors with a safer investment environment. Only in this way can the digital currency market develop more steadily in the future.

In general, the collapse of UST and LUNA not only caused huge economic losses to 200,000 Korean investors, but also sounded the alarm for the entire digital currency market. In the future development, how to balance innovation and risk will be an important issue that all participants need to face together. I hope that this incident can trigger more extensive discussions and thinking, so that every investor can be more rational and cautious in the journey of pursuing wealth.

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Binance INTL	OKX INTL	Gate.io INTL	Huobi INTL
China Line　APP DL	China Line　APP DL	China Line　APP DL	China Line　APP DL

Note: The above exchange logo is the official website registration link, and the text is the APP download link.

The collapse of the Korean projects UST and LUNA has caused huge losses to investors and has had a serious impact on the world. According to a report by Yonhap News Agency today, sources revealed that the Korean financial authorities have launched an emergency investigation into the Terra collapse in South Korea to strengthen investor protection.

Industry insiders revealed that the Financial Supervisory Commission (FSC) and the Financial Supervisory Service (FSS) of South Korea recently asked local cryptocurrency exchanges in South Korea to share trading information related to UST and LUNA, including trading volume, closing price, number of related investors, etc. In addition, these regulators also asked the exchanges to provide countermeasures to the collapse and analyze the causes of the collapse.

An executive of a local cryptocurrency exchange in South Korea revealed to Yonhap News Agency: Last week, the financial regulatory authorities requested data on trading volume and number of investors and evaluated the relevant response measures of the exchange. I think they did this to formulate measures to minimize future damage to investors.

Market observers estimate that due to the collapse of the cryptocurrency market, the global cryptocurrency market value has evaporated by about US$45 billion in the past week. It is speculated that about 200,000 investors in South Korea have invested in UST and LUNA.

According to 120BTC.com, in addition to the urgent investigation and monitoring of the Terra crash, the Financial Supervisory Commission and the Financial Supervisory Service of South Korea are expected to speed up the formulation of the Basic Law on Digital Assets, including consumer protection, and plan to implement it in 2024.

The South Korean financial regulatory authorities mentioned that due to the lack of relevant legal basis, they have no right to request data from the Terra platform or investigate and supervise this situation. If the financial authorities have the opportunity to discuss the regulation of stablecoins and DeFi systems based on the Korean won, the domestic virtual currency industry will grow stronger.

Multiple Korean exchanges have removed UST and LUNA transactions

At the same time, according to the Korea Times, many Korean cryptocurrency exchanges have removed UST and LUNA transactions. Gopax was the first to remove UST and LUNA transactions at 3 pm on the 16th. Upbit and Bithumb, the two largest cryptocurrency exchanges in South Korea, also followed suit. Upbit will no longer provide Luna trading services from the 20th, and Bithumb plans to remove Luna transactions on the 27th.

In addition, a cryptocurrency investor who was arrested by the police after trying to break into the home of Terra founder Do
Kwon in Seoul last week revealed during interrogation by Seoul police on the 16th that he lost about 2 to 3 billion won (about 2.3 million US dollars) due to the Terra crash. The cryptocurrency investor, who runs an online broadcasting channel, claimed that some people ended their lives because of the collapse of the UST stablecoin. He urged Do
Kwon to take responsibility for the collapse and apologize to more than 200,000 victimized investors who lost their savings.

In order to save the Terra ecosystem, Do Kwon proposed a new Terra ecosystem reconstruction plan this morning, suggesting a hard fork. The old chain is called Luna
Classic-LUNC, which will be airdropped to original holders, pledgers, and developers, but founder and CEO Changpeng Zhao (CZ) seemed disappointed with the proposal.