Home News Technology After $ 40 Billion Evaporation, Terra Digital Founder Admits “Made a Mistake”

After $ 40 Billion Evaporation, Terra Digital Founder Admits “Made a Mistake”

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The co-founder of cryptocurrency Terra, which collapsed in May and evaporated $ 40 billion of investor money, admitted he was “wrong,” but said he has not yet contacted South Korean investigators.

The collapse of TerraUSD and its sister token, Luna, which dropped to near zero, hit the cryptocurrency market, causing losses of over $ 500 billion. Stable coins are designed to be relatively stable in price and are usually tied to a specific commodity or real currency.

Many investors lost their savings when Luna and Tira plunged into a “death spiral” and collapsed, and South Korean authorities opened criminal investigations into the incident. In his first public comment since then, Do Kwon, the 31-year-old South Korean founder of Terraform Labs, spoke to digital media Koenig from Singapore, saying the incident was “cruel”. “I think in terms of wound dressing, the best thing I can do is be honest about everything that happened. And admit I was wrong,” he added.

Last month, South Korean prosecutors broke into the home of Kwon’s partner Daniel Shin as part of an investigation into allegations of illegal activity behind Tera’s collapse. In addition, the authorities prevented former and current key Theraform Labs employees from leaving the country and asked Kwon to notify them when he returned.

But Kwon said in the interview that he had not been contacted by prosecutors, nor that he had decided whether he would return to South Korea to cooperate with the investigation. “It is a difficult decision because we have never communicated with the investigators”, he said, adding: “They have not presented any charges against us.” Kwon indicated that he still believed in Tiera.

A few weeks after the coin collapsed, it launched a new version called Tera 2.0, but its value quickly dropped from $ 11 to $ 2. “I will always do things focused on Tira and for the Tira community. This is my home and this is where I feel there is a brighter future, ”Kwon added. But with lawsuits and investigations pending, analysts say Kwon’s next projects are unlikely to be successful.

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