Do Kwon grants first interview since Terra crash + other major crypto updates this week.

During a wide-ranging interview with former CNBC reporter Zack Guzman, Do Kwon said that he alone was responsible for the downfall of the popular Terra crypto project

The events of May 2022 in the crypto space are still very fresh in many people’s minds. Predominant among them is the collapse of the Terra ecosystem that followed the de-pegging of the UST stablecoin and the Terra Luna’s price crash. The crash led to investors losing around $45 billion within a few weeks.

On Monday, Do Kwon, the CEO of Terraform Labs – the crypto ecosystem behind the debacle – after months of hiding in Singapore and a trail of comments on social media finally appeared in public for his first interview since the project’s implosion.

The Terra drama seems not to be ending anytime soon. Two days after the interview, a news report came out that Do Kwon has hired South Korean counsel in preparation for a legal battle. 

And, in what looks like a farce, a crypto hedge fund manager has claimed to have lost $450,000 to a porn virus. I mean, how are you going to explain to investors that their hard-earned funds crashed in the process of you jacking off to some internet adult content? 

Interesting things are happening. 

Do Kwon grants first interview after Terra crash

During a wide-ranging interview with former CNBC reporter Zack Guzman, Do Kwon said that he alone was responsible for the downfall of the popular Terra crypto project. 

He acknowledges that he was the person who presented the “vulnerabilities” that resulted in the multi-billion-dollar crash. According to him, he made a series of big bets that ultimately didn’t pay off in the end.

This led to the crash of LUNA’s price from the highs of close to $120 in early May to the lows of mere pennies.

Do Kwon said:

“I made confident bets and made confident statements on behalf of UST because I believed in its resilience and its value proposition. I’ve since lost these bets, but my actions 100% match my words. There is a difference between failing and running a fraud.”

He admitted that he had an “entertaining alter ego”. Kwon also insists that he has never shorted any cryptocurrency in his entire life (let alone the cryptocurrencies from the Terra ecosystem), rejecting the rumours that he himself profited from the epic crash. 

The controversial developer says that he himself burned through most of his net worth within several days when LUNA and UST spiralled toward zero back in May. However, due to the anonymous nature of cryptocurrencies, it is almost impossible to verify whether or not Kwon’s claims are legit. 

Days after appearing in public, Do Kwon has reportedly hired a new team of lawyers in South Korea in anticipation of a legal battle, according to a Wednesday report.

The report from the local Korean news outlet Naver claims that Kwon submitted a letter of appointment to the Seoul Southern District Prosecutors’ Office, which is currently investigating both Kwon and Terraform Labs.

As the report specifies:

“He is said to have recently submitted a letter of appointment to an attorney at the Seoul Southern District Prosecutors’ Office.”

Recall that the Terra founder earlier in the week said he hadn’t been contacted by South Korean authorities, and neither have they pressed any charges against him.