23 June 2022 | 4:20 pm
Do Kwon, CEO of Terraform, expressed his “confidence” in the possibility of successfully reconstructing the Terra blockchain (LUNA) following the crash in May 2022 in an interview with the Wall Street Journal.
Many teams are developing and redeploying their applications from the old blockchain to the new one has given him confidence, says Do Kwon.
“Unfortunately, Terra 2.0 appeared to be somewhat dead on arrival because it did not assist ruined investors in recouping their enormous losses. Nevertheless, he has voiced hope for reviving a bigger and more powerful Terra blockchain.”
His tweets also demonstrated his trust in the ability of blockchain to win over investors:
Do Kwon claim that after “losing” almost all of his assets as a result of the LUNA-UST crash and losing “bets” on the price of LUNA, his conviction remains unwavering.
“I am certain of UST’s potential and the value it can contribute, thus I have gladly accepted bet offers and made statements about it with assurance. Even though I have so far lost those bets, my words are always fulfilled by my deeds. Failure and fraud are two distinct things.”
Terraform Labs and Do Kwon have been involved in several legal disputes and litigation since the collapse. More than 90 Korean investors who suffered losses filed a complaint against Mr. Do Kwon, charging him with fraud and illegal fundraising.
The Seoul prosecutor’s office acknowledged that it was looking into the matter but was unable to offer any other details. All Terraform Labs personnel in Korea, regardless of whether they are still employed by the company or have left it, are currently subject to a travel and exit ban enforced by the government.
According to the WSJ, several members of the cryptocurrency community have also accused Kwon of orchestrating a complex scam. Kwon was referred to as “a fraudster” by Cory Klippstein, the CEO of Swan Bitcoin, as reported by the WSJ.
A US citizen sued Terraform Labs, Mr. Do Kwon, and the investment funds that supported the project last week, accusing them of selling unregistered bonds and engaging in fraud.
Terraform Labs did not comment on these investigations but said it would take legal action to protect itself.
LUNA’s price, on the other hand, has been steadily falling ever since it was revived and is currently hovering around the $1.95 level.