Terraform Labs co-founder Do Kwon does his second interview since the implosion of the Terra ecosystem. The incident left a $60 billion black hole and sparked a chain of events that further tarnished the cryptocurrency industry.

Since then, multiple rumors of foul play have surfaced, including allegations that Do Kwon siphoned off tens of millions of dollars each month before the crash and used shell companies to launder funds stolen from users.

However, Do Kwon has always insisted that it was all about gambling big and losing rather than a grand conspiracy to defraud investors.

Host Laura Shin of the Unchained Podcast said her goal for the interview was to remain unbiased in an attempt to uncover new information.

“I approached the interview with an open mind, regardless of whether Terra had been a fraud or not. Which means I tried to keep an open mind to both possibilities.”

Unlike Do Kwon’s first interview with Coinage, which was widely labeled a PR stunt, Shin asked tough questions and probed some of the answers.

Terra co-founder says charges against him are illegitimate

The nearly hour-and-a-half long interview covered numerous questions, including Do Kwon’s views on the extradition red notice to South Korea, his “arrogance” on social media before the crash, and his message to investors.

On the matter of voluntarily returning to South Korea to face fraud charges under the country’s Capital Markets Act (CMA), Do Kwon said that because cryptocurrencies are not classified as securities, he has interpreted the matter as outside the jurisdiction of the authorities. He said:

“The consistent position of Korean governments has been, and even the Financial Services Commission directly, that cryptocurrencies are not securities… And it is not within their jurisdiction to regulate cryptocurrencies for that reason.”

Do Kwon added that he was disappointed that regulators tried to create new regulations through criminal proceedings.

Digging further, Shin flatly asked Do Kwon if he disagreed with the arrest warrant and considered the charges to be illegitimate. In response, the co-founder of the project said that he did not receive a copy of the arrest warrant. Shin closed this statement, noting that a pdf copy was made available to him.

Kwon then clarified that he did not read the pdf, reiterating his earlier comments that crypto falls outside the purview of the CMA.

“We don’t think any of the charges related to the CMA are applicable because the government’s position has been that cryptocurrencies should not be governed by the CMA, that they are not securities… we don’t think they are legitimate charges and they are politically motivated.”

Do Kwon did not confirm or deny that he currently resides in Singapore for fear of his safety and not being able to lead a normal life. He refused to reveal his current whereabouts under further questioning.

arrogant person

Before the Terra ecosystem collapsed, things were going well, with Terra USD overtaking Binance USD to become the third largest stablecoin, Do Kwon often gave cocky interviews. Shin referred to this as Do Kwon’s “entertaining alter ego”.

On whether he regrets his “arrogant tone during that time,” Do Kwon said that he was caught up in shitty posts. However, in hindsight, he regrets the image he portrayed at the time.

“I got too carried away by interacting with other people on Crypto Twitter. So the industry jargon for this is called a shit post. In hindsight, I think I should have held myself to a more stringent standard.”

He said, and blamed a degree of arrogance on those he interacted with online, saying it matched their energy.

Do Kwon described himself as introverted and somewhat of a loner, but as Terra grew older and users wanted to connect with the team, he saw social media as a fun and entertaining way to engage with the community.

Do Kwon’s Regrets

Addressing the human tragedy that arose from the collapse, including users committing suicide, Shin asked Do Kwon to deliver a message to the users of Terra.

Taking a deep breath and a long pause, Do Kwon hinted that the cause of the problem was due to weaknesses in the protocol design rather than a rug pull. However, he said that he bears full responsibility for the collapse.

“Whatever problems there were with the Terra design, its weakness in responding to the cruelty of the markets, is my responsibility and my responsibility alone.

By accepting blame, he said, “it’s not easy to live with” the financial, emotional and economic damage that happened.

Shin said that no apology was offered to the users, to which Do Kwon said that he was sorry.

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This post Terra Co-Founder Do Kwon Tells Laura Shin Fraud Charges Against Her Are Illegitimate

was published first on https://cryptoslate.com/terra-co-founder-do-kwon-tells-laura-shin-fraud-charges-against-him-are-illegitimate/


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