Crypto lenders, which boomed during the COVID-19 pandemic, have recently encountered difficulties as a result of a slump caused by the failure of a major token in May and a global risk-off sentiment.
Some of the companies that have recently been in trouble are listed below:
The South Korean firm behind the dollar-pegged stablecoin TerraUSD and its paired token Luna saw its value plummet in May, sparking sell-offs and igniting a chain reaction.
Do Kwon, the company’s co-founder, announced a “recovery plan” in May, including additional outside funding and the rebuilding of TerraUSD so that it is backed by reserves rather than an algorithm to maintain its 1:1 dollar peg. r
According to a spokesperson for South Korea’s Supreme Prosecutors’ Office, several Terraform employees have been placed on a no-fly list and are unable to leave the country.