South Korea's Financial Supervisory Service Investigates Terra
The crypto Terra hasn't been out of the news lately. Today it suffered an attack from none other than South Korea.
Terra was the most popular stablecoin in the world. It was pegged to the US Dollar. But in recent days, the price of Terra crashed, and investors became concerned.
The investigation is intended to clarify the factors that resulted in the shock, and identify measures that may be taken to prevent a similar situation in the future.
A report states that more than 200,000 South Korean investors suffered losses as a result of the crash. Some even lost huge sums - one investor who lost about $2 million stormed the home of the cofounder of Terra and demanded answers regarding what had happened with his investment.
Financial regulators also asked the aforementioned entities to report on the countermeasures that were taken (or not) to protect investors' funds, and what happened.
Regulators are rubbing their hands over the huge gains they are seeing in the market.
The Terra collapse, which according to some estimates cost about $100 billion from the overall crypto market, brought even more attention from financial regulators around the world to the already perplexing issue of crypto regulation.
The authorities are starting to take real action against cryptocurrencies, with a harder line on them.