Terra Digital founder admits he ‘made a mistake’ after evaporating $40 billion
The collapse of TerraUSD and its child token Luna, whose value fell to near zero, hit the crypto market, resulting in losses of more than $500 billion. Stablecoins have a relatively stable price and are usually pegged to a specific commodity or real currency.
Many investors lost their savings when Luna and Tira plunged into a “death spiral” and collapsed, and the South Korean authorities opened a criminal investigation into the accident. In his first public comment since then, Do Kwon, the 31-year-old South Korean founder of Terraform Labs, addressed Singapore-based digital media Koenig, calling the accident “violent.” “I think that when it comes to dressing wounds, the best thing I can do is be honest about everything that happened. And just admit that I was wrong.”
Last month, South Korean prosecutors raided the home of Kwon’s associate, Daniel Shin, as part of an investigation into allegations of illegal activities behind Tira’s collapse. The authorities also prevented former and current key Theraform Labs employees from leaving the country and asked Kwon to notify them upon their return.
But Kwon said in an interview that prosecutors have not contacted him and he has not decided whether he will return to South Korea to cooperate with the investigation. “It’s a difficult decision because we never spoke to investigators,” he said, adding, “They didn’t press any charges against us.” Kwon indicated that he still believes in Tiera.
Just a few weeks after the coin crash, he launched a new version called Tera 2.0, but its value quickly dropped from $11 to $2. “I will always do something around Tyra and for the Tyran community. This is my home and I feel like there is a bright future here,” Kwon added. Analysts say that with the lawsuits and investigations still pending, Kwon’s next projects are unlikely to succeed.