The head of Terraform Labs, Do Kwon, believes in the success of the Terra 2.0 project and does not consider himself a fraudster. He stated this in an interview with TheWall Street Journal.
“I am deeply confident that we can become stronger than we were. […] Many developers are in the process of relaunching their applications on the new network,” Kwon said.
After the collapse of the LUNA cryptocurrency and algorithmicstablecoin UST, the Terraform Labs team proposed to restart the network. The new blockchain went live on May 28. Leading cryptocurrency exchanges, including Binance, Huobi and Kraken, have announced its support.
Terra's Death Spiral: How and Why LUNA and UST Failed
The collapse of the Terra ecosystem had serious consequences for the digital asset market. The depreciation of LUNA and UST has caused serious harm to Anchor Protocol users.
The incident also affected solvencymajor industry players: the cryptolending platform Celsius was one of the largest UST holders, and the hedge fund Three Arrows Capital invested about 200 million in LUNA as part of the February token sale.
The situation around the project has attracted the attention of South Korean regulators. The Seoul Southern District Prosecutor's Office also became interested in Terraform Labs.
In June, journalists learned that the US Securities and Exchange Commission had also initiated an investigation into the people behind the UST stablecoin.
In a conversation with WSJ, a representative from Terraform Labssaid he had no plans to comment on any law enforcement investigations. He called the lawsuits “baseless” and noted that the company intends to defend itself.
According to Do Kwon, due to the collapse of Terra, he lost almost all of his fortune. He added that he does not consider himself a fraudster, since he himself was completely confident in the stability of the UST.
“I confidently placed bets and confidently supportedUST because he believed in its sustainability and value proposition. I lost bets, but my actions are 100% consistent with my words. There is a difference between failure and fraud,” he said.
Let us recall that in June 2022, investors accused Terraform Labs and Kwon personally of making false statements regarding the stability of UST.
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