Do Kwon Says There’s a Difference Between Failing and Fraud in Interview About Being “Devastated” by LUNA Collapse
In a recent interview with the Wall Street Journal, Terraform Labs (TFL) founder Do Kwon expressed his “devastation” over the mid-May implosion of LUNA and UST (WSJ). Prior to LUNA’s collapse, he declared himself to be a billionaire, but the fallout caused him to lose a sizable portion of his wealth. Do Kwon recently discussed the repercussions of the UST and LUNA scandals with WSJ authors Alexander Osipovich and Jiyoung Sohn. The interview, which was Kwon’s first since Terra’s demise, was made public on June 22. Kwon told the reporters that although he lost most of his wealth in the crash, he isn’t overly concerned about it.
Kwon, however, expressed regret for the losses suffered by investors as a result of the aftermath. In the interview, Kwon said, “I’ve been grieved by recent events and hope that all the families who have been affected are taking care of themselves and those they love.” He also talked about his confidence, which some people viewed as cocky, and said that it came from his strong belief in the Terra environment. Additionally, Kwon talked about the Terra blockchain and LUNA 2.0, which is currently trading for $1.88 per unit, down 90% from its all-time high of $18.87. On June 23, LUNA 2.0 had a market worth of about $238 million, and over the previous day, the token lost 2.6 percent of its value. Kwon anticipates a robust comeback.
Kwon has also been accused by Fatman of withdrawing $2.7 billion in finances prior to the project’s failure, but the Terra co-founder disputes this and says the accusations are untrue. A class-action lawsuit alleges that Kwon and Terraform Labs deceived investors, and it also names both parties as defendants. Additionally, according to official documents, Do Kwon shut down Terraform Labs Korea prior to the fall of the UST and LUNA. In the midst of the debate, three members of Terraform Labs’ internal legal team also left the organisation.