5 High-Profile Cryptocurrency Implosions Shatter Trust, Wipe out Billions in Value During 2022's Crypto Winter

2022 was a year of phenomenal cryptocurrency blowouts, as several projects collapsed and many more are on life support after the entire ecosystem was shattered. The fallout from these digital currency projects has not only removed billions of dollars in value from the crypto economy, but also eroded trust.

Timeline of Celsius, Ftx-token, Husd, Terra-luna-v2, Voyager-token

The price of Terra Luna (LUNA) has been down for the past few days before rising to $1.74 at press time. As the SEC charged Terra founder Do Kwon with fraud over the $40 billion crypto crash, it has adversely affected the market, and LUNA as well.

The price of the Terra Luna Classic (LUNC) rose by 1.5% in the past 24 hours, reaching $0.0001648 as the wider market rose by a similar percentage. It has now fallen by 6% in a week and by 8.5% in the last 30 days, as a mixture of the SEC's actions against Terraform Labs and struggling investor sentiment pulls it down.

In the world of cryptocurrencies, Terra Luna Classic (LUN) has been making waves recently, as its price has been on the rise following a surge in trading volume. With the volume of trading reaching $100 million, many investors are speculating that the price of LUN could reach $1 in the near future. 

Terra Luna Classic community has failed to burn significant LUNC tokens this week as part of the commitment to remove tokens from the total circulating supply. The Terra LUNA Classic community burned just 5 million LUNC tokens this week, losing the focus to burn in the absence of crypto exchange Binance's monthly LUNC burn mechanism.

Terra (LUNA) and Terra Classic (LUNC) prices witnessed a sudden fall after the Securities and Exchange Commission (SEC) on Friday filed a lawsuit against Do Kwon, Terraform Labs, and affiliates. It indicates that Do Kwon still has influence over LUNA, as well as LUNC.

Terra-related tokens lost an average of 5% in the last 24 hours following the United States Securities and Exchange Commission's (SEC) charges against Terraform Labs and Do Kwon, according to CryptoSlate's data.

Cryptocurrency lending company Celsius failed to accurately record transactions between its affiliates, leaving it difficult to fully determine intercompany claims, according to court documents filed on Thursday. The documents were filed in response to a court order requesting information on potential claims against its affiliates, following the company's bankruptcy filing in July 2022.

The terra luna classic price has fallen to $0.00016791, with its 4.5% drop today following the news that the SEC is charging Terraform Labs and CEO Do Kwon "with orchestrating a multi-billion dollar crypto asset securities fraud." LUNC remains up by 4.5% in the past week, but is down by 4% in the last 30 days, amid a turbulent time for the market as a whole.

Former cryptocurrency kingpin Do Kwon has been charged with orchestrating a multibillion-dollar crypto asset securities fraud by the US Securities and Exchange Commission (SEC). South Korean native Kwon spearheaded Terraform Labs, the Singapore-based developer of failed stablecoin Terra USD and sister coin LUNA, both of which saw a stunning US$40bn collapse in May 2022.

The terra luna classic price has dropped by 3.5% in the past 24 hours, as part of a marketwide fall caused by speculation regarding the SEC acting against Paxos and the BUSD stablecoin. At $0.00016228, LUNC is also down by 10% in a week and by 8.5% in the last 30 days, with the altcoin seeing its market cap fall below $1 billion over the weekend.