Following the shocking failure of the UST stablecoin and the Luna governance token last month, authorities are now looking into whether Do Kwon, the founder of Terraform Labs, was operating a Ponzi scheme. The troubled CEO is vehemently defending his activities.
In a recent interview, Kwon noted that the catastrophic collapse of the dual tokens left him feeling “devastated” and expressed his hope that those touched by the tragic events that followed as his innovations lost almost all of their value were “taking care of themselves and those that they love.”
Failure and running a fraud are two different things, according to Do Kwon
One of the saddest moments in crypto history will be the implosion of Terra. Most individuals have accused Kwon of being the brains behind a sophisticated crypto-fraud scam that cost investors billions of dollars.
However, according to the project’s designer, Terra, failure was a genuine shortcoming rather than the result of a protracted and elaborate falsehood.
He told the Wall Street Journal, “I made confident bets and strong comments on behalf of UST because I believed in its resiliency and its value offer. “I’ve since lost these bets, but my words and actions are exactly in line. Between failing and conducting a fraud, there is a distinction.
Following the spectacular rise of LUNA and UST earlier this year, Kwon became the first crypto billionaire. By April, LUNA’s paper worth had risen to $40 billion and had soared over $118 on the biggest cryptocurrency exchanges. It crashed to zero five weeks later. He said that the collapse of the two twin tokens caused him to lose practically all of his wealth. He is allegedly frugal, therefore losing a sizable portion of his entire assets “doesn’t concern” him.
Kwon is “greatly confident” in his ability to rebuild Terra Network from scratch.
In the days following the stunning wipeout, hundreds of thousands of Terra investors sadly watched their investments disappear. It is understandable why Kwon and Terraform Labs have been named in numerous lawsuits in both South Korea and the United States as a result of the UST catastrophe.
The South Korean businessman may have broken federal investor protection rules by marketing UST, according to a separate inquiry by the U.S. Securities and Exchange Commission (SEC).
Terra’s return to its original course is already in the works. In an effort to prevent the ecosystem from going extinct after the hard fork in May, Terra launched a fresh blockchain without the UST stablecoin.
Kwon stated he had “great faith in our potential to grow back even stronger than we once were” in the Wall Street Journal interview. The co-founder of Terra stated that “many builders are in the process of relaunching their apps on the new chain.”
