The collapse of the Terra ecosystem earlier this year in May 2022 shocked the entire crypto fraternity as it led to a massive wealth erosion of more than $40 billion in a matter of a week. Since then, South Korean regulators have been keen to investigate the cause of the collapse.

However, in his recent interview with Coinage, Terra founder Do-Kwon made a surprising admission that Korean regulators have not contacted him or filed any charges. Do-Kwon currently resides in Singapore, Coinage’s Zack Guzman asked if he plans to return to South Korea. In response, Kwon said:

“It’s quite difficult to make that decision because we’ve never had contact with the researchers. They never charged us.”

Following the collapse of the Terra ecosystem, there has been a series of class action lawsuits against Do Kwon, Terra and all of its affiliates. Last month, South Korean authorities escalated their investigation into Terra and raided the home of Terra co-founder Daniel Shin.

South Korean Regulators Want Do-Kwon Collaboration

Supervisors from South Korea have also asked the Do-Kwon to cooperate in the investigation. They also want Kwon to notify them as soon as he returns to South Korea. While no arrests have been made, regulators have banned current and former Terra employees from leaving the country.

Do Kwon said he would work with authorities when the time came. The host of the interview further asked if there are any prospects of a prison sentence. In response, Kwon said, “Life is long”. So far, the South Korean authorities have not provided concrete details on the matter.

In the past, Do Kwon said he does not believe he committed fraud. He added that he just bet big on something that failed.

Bhushan is a FinTech enthusiast and has a good flair in understanding financial markets. His interest in economics and finance draws his attention to the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In his spare time, he reads thriller-fiction novels and sometimes explores his culinary skills.

The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or the publication is not responsible for your personal financial loss.

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