Do Kwon finally breaks silence on Terra crash

‘I, and I alone, am responsible,’ he said.
August 17, 2022 - Tom Peters

After weeks of silence and keeping a low profile, Do Kwon, founder, and CEO of Terraform Labs, speaks on the Terra ecosystem crash in May, which ran up a loss of over US$ 40 million. The crypto market is still reeling from its impact.


In the interview with a correspondent from Coinage Media, Do Kwon reflected on the six days leading up to the Terra-Luna implosion, describing it as 'brutal.' 


'I just want to make it perfectly clear that the way that I thought about Terra and Luna was — I mean; this was essentially my life. And I put my actions where my beliefs are. I bet big, and I think I lost,' Do Kwon said, as he revealed he never even considered the thought of Terra’s failure.


The Terraform Labs CEO harbours suspicions of a mole within the company who took advantage of private information to profit from the protocol’s vulnerabilities.


Before disaster struck Terra, it suffered a liquidity imbalance, which was normal and recoverable. But then, someone exploited the event and started selling off massive amounts of UST tokens, causing it to lose its parity to the U.S. dollar.


'The only people that knew that were TFL employees. So if you’re asking me whether there was a mole at Terraform Labs, that’s probably ‘yes.'

Do Kwon didn’t mention names but claimed, “I, and I alone, am responsible for any weaknesses that could have been presented for a short seller to start to take profit.”


Backlash on Twitter


Do Kwon’s interview has been met with mostly negative sentiments by the Twitter crypto community, although a handful still believes he’s innocent.


A podcaster, @econoar, tweeted that Kwon scammed billions and is still 'partying' while Tornado Cash developers wrote some code for privacy and are now 'fearing for their lives.' He was referring to the recent crackdown on the developers of Tornado Cash, which makes crypto transactions anonymous.


Another user, @FatManTerra, also claimed Do Kwon lied about many things in the interview and was obviously trying not to implicate himself.


Since the infamous crash, Do Kwon and Terraform Labs are in serious legal trouble in South Korea with various criminal allegations.


Photo: Bloomberg


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