One year later, Do Kwon has lost $11 million on the bet, Terra Luna has collapsed, with Kwon currently on the run from authorities in Serbia.
LUNC and accompanying algorithmic stablecoin Terra USD ecosystem imploded, with LUNC trading at fractional decimal values close to zero. However, Cobie also stated in Dec. 2022:
"I actually paid out the bet shortly after Luna went to 0, and then bought enough Luna to hedge in case it somehow went back to $88. But I lost my hedge so if Luna goes to $88 in the next 3 months I am fucked" As the bet was active until mid-March of 2023, Cobie was required to hold collateral despite LUNC's collapse, as the funds were paid out early, and conditions could differ at settlement. At the time of publication, LUNC is currently trading at $0.000124 per token.
Last Nov. 2022, cryptocurrency exchange FTX, then third-largest in the world by volume, filed for bankruptcy over allegations of misappropriating users' funds and left the deposits of over 1 million creditors frozen. On Apr. 4, 2022, Cobie transferred the prize money and principal, worth $22 million in stablecoins, to winners GCR and Algod via FTX. The subsequent flow of funds is unclear.
On Sept. 26, 2022, Interpol issued a red notice arrest warrant for Do Kwon per the request of South Korean prosecutors over accusations of fraud relating to Terra Luna's collapse. The former blockchain executive is reportedly hiding in Serbia, which does not have an extradition agreement with South Korea. Aside from being out $11 million from the bets, the U.S. Federal Bureau of Investigation and Department of Justice reportedly began probing Terra Luna's collapse on Mar. 14, 2023.
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