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Terra Founder Do Kwon Appeared in First Public Interview & Claimed His Charges Are ‘Politically Motivated’

2022-10-19 , 3:14 pm

If you follow the cryptocurrency world, you would have heard of the recent Terra Luna crash in May.

Ever since the incident, many people speculated that the founder, Do Kwon, is currently on the run, escaping from all his responsibilities.

However, he recently appeared in his first public interview and claimed his charges are not legitimate.

Here is also a little backstory behind what happened and why everyone is triggered at him:

What is Terra?

Terra is a blockchain network, similar to Ethereum or Bitcoin, that produces Luna tokens. Do Kwon and Daniel Shin of Terraform Labs created this network back in 2018.

Terraform Labs created the TerraUSD coin, also known as UST coin, to be an algorithmic stablecoin on the Terra network.

The UST coins are not backed by real assets but the value of UST would be backed by its sister token, Luna.

What Happened to Terra?

Terra network and its leader, Do Kwon, rose to prominence in the cryptocurrency world in the span of four years. However, everything turned out disastrous.

The UST was meant to be kept at a constant value of US$1 in a complex arrangement involving Luna. However, the arrangement soon collapsed.

The Terra Ecosystem’s stablecoin UST and cryptocurrency LUNA, which were both intertwined, collapsed in May 2022. It wiped out the savings of many people, with an estimated $60 billion wipeout.

Imagine the pain of all those people who lost their money and the pain of hearing your wife screaming at you.

Since then, Do Kwon has gone MIA, and the Interpol has issued a Red Notice for his whereabouts.

His last known location is in Singapore.

South Korean Authorities Charge Him

An arrest warrant was issued on charges of violating the country’s Capital Markets Act. The Seoul Southern District Prosecutors’ Office may also charge him with fraud with intent.

South Korea also ordered Kwon to surrender his passport, or risk getting it revoked.

Do Kwon said he is complying with “all the document requests” made by the South Korean prosecutors.

Do Kwon’s First Public Interview after the Incident

After weeks of silence, Do Kwon appeared in a public interview with Unchained host, Ms Laura Shin, yesterday (18 October).

Do Kwon stated that the charges against him by the South Korean prosecutors are not legitimate and are politically motivated.

He added that he has yet to receive a copy of the Interpol’s red notice and his order does not include an international arrest warrant.

“Every sovereign nation can interpret the red notice the way it sees fit,” he told Ms Shin. He said he plans to address, appeal and do everything to get a “better result.”

Many people were curious about his current whereabouts, which he did not disclose due to his personal and privacy concerns.

He felt that the Charges are Politically Motivated

Do Kwon felt disappointed that the prosecutors are attempting to create new regulations through criminal enforcement proceedings. He added on that he does not think that “any of the charges pertaining to the Capital Markets Act” are “legitimate” and called them “politically motivated.”

However, Do Kwon said he takes full responsibility for the failure of the blockchain.

“I own up to the responsibility fully. It’s not easy—the hardest thing about the current situation is having to contend with so much astronomical loss. It’s quite hard to put into words, but the scale of the financial and emotional and economic damage that happened here is not easy to live,” said Do Kwon.

Despite his failure this time round, Do Kwon reiterated his belief that the world still needs decentralized money. This also includes financial instruments that do not rely on brokerages, exchanges, or banks by using smart contracts on a blockchain.

“I think in terms of the recent regulatory clampdown on censoring transactions and arresting developers from Tornado Cash, it’s indicative of how we need to work towards that decentralized future.”

He urged developers to learn from his mistakes but keep attempting to create decentralized money that is “more robust, more transparent and resistant to failure.”