Factbox: Cryptocurrency lenders who ran into difficulties
The Hindu
Crypto lending platforms had to resort to extreme measures in some cases, such as freezing trades
Crypto lenders, which boomed during the COVID-19 pandemic, have run into difficulties recently due to a slump brought on by the downfall of a major token in May and a global risk-off sentiment.
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Below are some of the firms that have run into trouble recently:
The South Korea-based company, which is behind the dollar-pegged stablecoin TerraUSD and its paired token Luna, has plunged in value in May, sparking sell-offs and igniting a chain reaction.
The company’s co-founder, Do Kwon, announced in May a “recovery plan”, with additional outside funding and rebuilding of TerraUSD so that it is backed by reserves rather than relying on an algorithm to maintain its 1:1 dollar peg.
An official at South Korea’s Supreme Prosecutors’ Office said on June 21 that several employees of Terraform had been put on a no-fly list and cannot leave the country.
The U.S.-based crypto lender said on July 6 it had filed for bankruptcy.