Do Kwon Interview Explains He’s ‘Devastated’ by LUNA Collapse, Says ‘There’s a Difference Between Failing and Fraud’
During a recent interview with the Wall Street Journal (WSJ), Terraform Labs (TFL) founder Do Kwon said he was “devastated” by the LUNA and UST implosion that took place in mid-May. He told the WSJ that he was probably a billionaire when LUNA tapped an all-time high before the collapse, but lost a great portion of his net worth following the aftermath.
Do Kwon Speaks About the Terra LUNA Collapse
Do Kwon has recently discussed the LUNA and UST fallout during an interview with the WSJ contributors Alexander Osipovich and Jiyoung Sohn. The interview was published on June 22, and its the first interview Kwon has done since the Terra collapse. Kwon told the reporters that he lost most of his wealth after the crash but that doesn’t bother him that much. “This doesn’t bother me,” Kwon told the reporters. “I live a fairly frugal life,” the Terra co-founder said.
Kwon, however, said he was sorry about the losses investors took from the fallout. “I’ve been devastated by recent events and hope that all the families who’ve been impacted are taking care of themselves and those that they love,” Kwon stated in the interview. He also discussed his confidence that many called cocky, and noted that it was because he was a big believer in the Terra ecosystem. Kwon said:
I made confident bets and made confident statements on behalf of UST because I believed in its resilience and its value proposition.” Adding he said, “I’ve since lost these bets, but my actions 100% match my words. There is a difference between failing and running a fraud.
Kwon Has ‘Great Confidence’ in the Terra’s ‘Ability to Build Back Even Stronger’
Furthermore, Kwon discussed the new Terra blockchain and LUNA 2.0 which is down 90% from the $18.87 per unit all-time high and now trades for $1.88. LUNA 2.0 has a market capitalization of around $238 million on June 23 and the token has lost 2.6% during the past 24 hours. Kwon believes the revival will be strong and thinks that LUNA 2.0 could someday surpass the LUNA classic (LUNC) chain.
“I have great confidence in our ability to build back even stronger than we once were,” Kwon told The WSJ reporters. Kwon’s WSJ interview follows the reports that said the U.S. Securities and Exchange Commission (SEC) was investigating Terraform Labs and the UST collapse. Moreover, a whistleblower called Fatman has accused Kwon of having massive amounts of LUNA in personal wallets.
Fatman has also accused Kwon of cashing out $2.7 billion in funds before the project collapsed but the Terra co-founder denies that he cashed out and he said the allegations were false. Kwon and Terraform Labs are also being sued in a class-action lawsuit that claims the co-founder and company misled investors. Additionally, official records indicate that Do Kwon dissolved Terraform Labs Korea before the LUNA and UST collapse. Three members of Terraform Labs’ in-house legal team left the company amid the controversy as well.
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Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 5,000 articles for Bitcoin.com News about the disruptive protocols emerging today.