Do Kwon, Terra blockchain creator, and CEO of TerraForm Labs has finally broken the silence on the implosion of LUNA and TerraUSD (UST), which is described as the largest and most controversial collapse in the history of cryptocurrency and stablecoins.
In an exclusive interview with Coinage anchored by Zack Guzman, Terra founder Do Kwon disclosed that he and TerraForm Labs, the troubled crypto company, have never been in touch with South Korean investigators, adding that no charges have been put forward against them.
This statement was made after the interviewer asked Do Kwon if he will be returning to Korea. While the Terra inventor is currently residing in Singapore, Daniel Shin, Terra co-founder, and manager of Chai crypto company, and other TerraForm Labs officials and employees are still in Korea.
Do Kwon said in the interview, “It’s kind of hard to make that decision because we’ve never been in touch with the investigators. They’ve never charged us with anything.”
Howbeit, several investors and litigation firms have filed numerous lawsuits including class actions against Do Kwon and TerraForm Labs. Recently, affected New Yorkers were urged by the New York Attorney General’s Office to file complaints about Terra and related crypto frauds.
Worthy of note is that the home of one of Terra’s co-founders Daniel Shin was raided by Korean prosecutors in search of facts and pieces of evidence about the biggest crypto failure to date. Also, other officials and employees have been banned from traveling out of Korea.
When asked if he was over-confident about the Terra project or was lying about the eventuality of the collapse, considering that he knew the risk of de-pegging and that almost all algorithmic stablecoins in history failed, Kwon responded, “we tried to build the best currency in the world but it just didn’t work.”
Do Kwon added that “It was supposed to be a stablecoin, but didn’t remain stable. It was started to become industry’s standard, I bet big, but I think I lost…”
On the whole, Do Kwon holds that the unfortunate Terra incident was not a case of fraud but rather a project that happened to fail.