Do Kwon says he takes full responsibility for the collapse of Terra

Do Kwon, the co-founder of Terraform Labs has taken responsibility for the “weakness” in the design of the Terra network that triggered its collapse. Terra collapsed in May, causing around $60 billion in losses.

Do Kwon takes responsibility for Terra’s collapse

The collapse of Terra has attracted regulatory attention, with authorities in South Korea inviting Interpol to issue a red notice against Do Kwon. The Terraform Labs co-founder has now opened up on the troubles facing him.

Kwon attracted backlash from the crypto community for what many termed as arrogance by mocking his competitors. In one instance, Kwon responded to Frances Coppola, a British economist that criticized the design of Terra’s algorithmic stablecoin, saying he does not “debate the poor.”

Nevertheless, Kwon rallied major investors into Terra, including Galaxy Digital and Lightspeed Venture Partners. The LUNA cryptocurrency also attracted a lot of support from crypto investors as it ranked as one of the top ten largest cryptocurrencies by market capitalization.

However, the collapse of Terra seems to have humbled Do Kwon. In a recent interview with Laura Shin, Kwon was asked whether he had remorse for having a “cocky” attitude, where he said he behaved in a particular way for entertainment. However, he said that looking back, he now sees his past tweets as “cringe.”

“Just because there are anonymous cartoon characters that are more liberal with the words that they’re using, does not mean that I should have followed suit. In my personal life, I am quite a bit of an introvert. When I first started Terra, there was not that much communication with media or Twitter, which wasn’t necessarily a big problem,” Kwon added.

Kwon says charges are politically motivated

The crash of Terra LUNA and the TerraUSD stablecoin was among the worst in the cryptocurrency sector. The crash wiped billions of dollars from the crypto market. Many investors suffered immense losses amid reports that some committed suicide after losing a considerable amount of money.

Kwon has now said that he has taken “full responsibility” for the weak design of the Terra network, adding that the token could not survive the “cruel” market conditions. He also apologized for the manner that he has been responding to the allegations and appearing defensive.

He added that he believed in the stability of the UST stablecoin. “I do apologize and do own up, you know the full responsibility of that,” he said.

Nevertheless, he still believed that the charges brought against him by authorities in South Korea were not legitimate and they were “politically motivated.” The executive has also added that he has not received the copy of Interpol’s red notice issued in September.

Kwon has also clarified that he has never lived in South Korea since the end of last year. However, he did not disclose his current location, saying he was concerned about his privacy and security.

Related

• Do Kwon denies owning $40m in crypto that South Korea recently froze
• Do Kwon to be a Global Wanted Fugitive? South Korea Asks Interpol to Issue a Red Notice
• Do Kwon Speaks Out, Says He Hasn’t Done Anything Wrong