Terra co-founder lost nearly all his wealth in wipeout: WSJ

Terraform Labs co-founder Do Kwon said he was probably a billionaire when the Luna token was trading near US$100. - Bloomberg

SEOUL (Bloomberg): Terraform Labs co-founder Do Kwon, whose crypto ecosystem collapsed in a US$40 billion wipeout in May, told the Wall Street Journal that he lost almost all his net worth in the crash.

"This doesn’t bother me,” he said in the interview with the Journal published Thursday (June 23).

"I live a fairly frugal life.”

Kwon told the newspaper he was probably a billionaire when the Luna token Terraform Labs backed was trading near US$100. That coin is now trading at close to zero.

Investigators in South Korea and the US are now looking into the circumstances around the unraveling of TerraUSD, the stablecoin Kwon championed that crumbled from its dollar peg in May. The event wiped out the savings of thousands of investors globally and set off a wider implosion in cryptocurrencies.

South Korea this week barred some current and former Terraform Labs employees from leaving the country, as prosecutors step up their investigation into TerraUSD. Prosecutors are also looking to invalidate Kwon’s South Korean passport, local broadcaster YTN reported on Tuesday.

The US Securities and Exchange Commission is investigating whether the marketing of TerraUSD before it crashed violated federal investor-protection regulations, Bloomberg reported on June 9. Terraform Labs told the Journal it wouldn’t comment on any active investigations.

In an attempted comeback, Kwon launched a new Luna coin last month that was distributed for free to holders of the original token. The new one, dubbed Luna 2.0, has slumped to $1.97 from a high of $18.87, according to CoinGecko.

Article type: free
User access status:
Join our Telegram channel to get our Evening Alerts and breaking news highlights

Hong Kong , Terraform , crypto , Do Kwon


Next In Aseanplus News

China's Xi to visit Hong Kong for 25th anniversary of handover
Chinese military says United States plane in Taiwan Strait endangered peace
HR and Home Ministries to meet with stakeholders on labour shortage issue, says Dr Wee
CPO futures market to see technical correction next week
Hong Kong child abuse scandal: First of 27 defendants to plead guilty in care home case gets four months’ jail
China’s Mars mission on track to lead the world in retrieving Martian rocks by 2031, says programme veteran
Singapore’s CapitaLand offers ‘buy now, pay later’ plan for Vietnamese residential project to entice Hong Kong investors
Coronavirus: Hong Kong tour group heads to Japan for the first time in more than two years after Covid-19 rules eased
When will China’s Fujian aircraft carrier be ready for active duty?
Boris Johnson’s father Stanley hopes UK parliament removes ban on Chinese ambassador

Others Also Read