TerraUSD and Luna algorithmic stablecoin collapse wipes out $60 billion
The algorithmic stablecoin TerraUSD (UST) and its sister token Luna collapsed in May 2022, losing nearly all their value. The system, developed by Terraform Labs, used an algorithm to maintain a $1 peg for UST by swapping with Luna. A bank run triggered by large withdrawals and a drop in yields caused a death spiral, wiping out approximately $60 billion in market value. Do Kwon, the founder, attempted to save the peg using Bitcoin reserves but ultimately failed.
- Company involved
- Terraform Labs
- AI system involved
- TerraUSD (UST) and Luna
10 source articles · read the reporting →
Rep. Anna Paulina Luna denies staff used AI to draft defence amendment
Rep. Anna Paulina Luna's congressional office used Claude, an AI chatbot, to spellcheck and grammar-check a summary of an amendment to the 2027 National Defense Authorization Act. Screenshots of the summary circulated online because it still contained the text 'Claude responded:'. Luna initially said staff used AI to correct draft text and did not edit it, then clarified that AI was only used on the summary and that no legislation is drafted with AI. The incident drew public speculation about AI use in legislative work.
- Company involved
- Office of Rep. Anna Paulina Luna
- AI system involved
- Claude
2 source articles · read the reporting →
An AI just fired a real employee — and it's a legal gray zone - Gagadget.com
The system recommended termination of a retail store employee for repeated lateness.
- Company involved
- Andon Labs
- AI system involved
- Claude (as Luna)
1 source article · read the reporting →
