Due to Kwon's explanation after the Luna disaster

 TerraForm Labs CEO denied fraud allegations related to the Luna and Terra cryptocurrency crash but was strongly backlashed by the community.



In an interview published by Coinage on August 15, Do Kwon, CEO of Terra, answered many questions regarding the historic collapse of the cryptocurrency market. This is the first time this 9x CEO has publicly appeared on mass media since the Luna disaster at the end of May.

CEO Do Kwon in an interview at Terra Singapore office. Photo: Coinage
CEO Do Kwon in an interview at Terra Singapore office. Photo: Coinage

Kwon insists that the Terra project is not a giant ponzi scheme. He said he also suffered heavy damage and did not know how much he lost from the collapse. "If you put yourself in the position of a founder with a project of nearly 100 billion USD, after reaping many results, you will not think of failure. I never thought Luna would collapse. This is still with me. too absurd," Kwon said.

He also did not deny that the company had an insider and suggested that this person may have taken advantage of the opportunity to make money. But if there is a flaw, the fault lies with the person who created it in the first place. "If there's a flaw in the design that causes crooks to short-sell and profit, that's my fault. I'm the only one responsible here," Kwon told Coinage.

"When the project collapsed, there were some threats to my family. Faced with danger, I had to leave Korea. I still have no intention of returning and there is no summoning call from the Korean authorities. sent to me," CEO Terra added.

However, his statements met with strong opposition from the community. Many people believe that he continues to cheat. Some comparisons between CEO Terra and developer Tornado Cash have just been arrested. "Kwon scammed billions of dollars and is still partying while developer Tornado Cash is worrying about his fate," user Eric Conner wrote on Twitter. Cryptocurrency researcher FatMan also suggested that Kwon lied about many things during the interview.

Previously, information collected by Korea's DigitalToday from the Supreme Court office of this country showed that Terraform Labs Korea decided to dissolve the branch after a board meeting from April 30. In the plan, the company's two offices in Busan and Seoul will be liquidated on May 4 and May 6. This is considered an unusual action before the Luna incident took place.

In late June, South Korean broadcaster YTN reported that prosecutors were seeking to invalidate Kwon's passport. Korean authorities also ordered Kwon to be summoned and searched and seized related documents at the company's office. The company's employees and former employees are also banned from leaving Korea.

In early May, the crypto community witnessed one of the biggest crashes in history when Luna and Terra's stablecoin UST suddenly plummeted. Economic Times called this a "massacre" for investors when the price of Luna fell 99.6%, from a peak of $86 on May 4 to $0.005 on May 13. Stablecoin UST from the 1 USD anchor also plummeted to 0.008 USD. Both cryptocurrencies are almost worthless after many failed rescue attempts by their founders. Analysts called this incident a stain on the cryptocurrency market and CEO Do Kwon's behavior when the scandal occurred was irresponsible.

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