Do Kwon Takes the Blame for Terra Crash, Apologizes for Past Tweets

In a recent interview with crypto journalist Laura Shin of the Unchained podcast, Terra founder Do Kwon opened up about the platform’s resounding crash. The TFL CEO took full responsibility for the collapse, apologizing for his earlier “arrogance”. He also addressed the fraud allegations he is currently facing. 

Fraud Allegations are Invalid, Says Do Kwon

The interview lasted over 1 hour and saw Shin ask numerous questions relating to the collapse. Shin’s interview bordered on the scam accusations leveled against Terra as well as Do Kwon’s earlier stances before the collapse.

In recent weeks, South Korean authorities have hounded Do Kwon due to his role in the Terra crash and the ensuing casualties. Speculations of fraud and foul play have begun making the rounds with increased intensity. South Korean prosecutors began probing into Terra hoping to decide whether or not its assets count as securities. 

However, the Terra executive believes the allegations are not legitimate. Do Kwon says the government’s view as well as that of the Financial Services Commission has always been that cryptocurrencies are not securities. As such, South Korea’s Capital Markets Act does not accommodate the fraud charges he is currently facing. 

Indeed, the Terra founder believes the charges are “politically motivated”. Do Kwon also commented on the Interpol red notice he reportedly received last month, saying he, in fact, did not receive a copy.  He also revealed that his current residence is not within South Korea, and for security and privacy he did not provide further details.  

Do Kwon Apologizes to Terra Community 

Shin brought up the losses that occurred following the collapse, even the Terra users that had committed suicide. The journalist asked Do Kwon to address the Terra community to which he apologized. 

Kwon Do-hyung acknowledged that his actions following the crash could have come across as defensive. He assumed responsibility for the Terra meltdown saying he’d had faith in the UST token’s stability. While speaking, he seemed to imply that a flaw in the protocol’s design had led to the collapse.

I am sorry. It could seem, with the way we’ve been responding to allegations in a news report, that we’re being defensive. That is absolutely not like that. I believed in the stability of the UST. I do apologize and do own up to, you know the full responsibility of that.” 

The TFL CEO noted that it was difficult to live with the knowledge of the extensive damage that had occurred. 

Pseudo Persona and Online Spats 

Before the Terra meltdown in May collapse, Do Kwon had developed a reputation as an outspoken, often argumentative crypto entrepreneur.  Quick to fire back at critics, Do-Kwon often tagged members of the crypto community as poor when faced with debates.

His “arrogance” continued even as Terra went down amidst several warnings that its algorithmic stablecoin model was headed for failure. Indeed, Do Kwon slammed detractors saying they would “be waiting until the age of men expires.”

However, post-collapse, the Terra Founder appears to have changed his tune. During the Unchained Podcast interview, Do Kwon stated that he was an introvert in real life. In Terra’s early days, he noted, there was little social media interaction “which wasn’t necessarily a big problem.”

Over time, the TFL executive claims he created a personality that allowed him to communicate better with the Terra community. Do Kwon stated that the majority of his behavior was meant to be entertaining as it was enjoyable “joking and shit-posting” with other Twitter users. Now, however, he describes his posts as “cringe.”

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