Binance could make $1.6 billion from its investment in Terraform Labs and has always prioritized user protection. This was announced by Bitcoin exchange head Changpeng Zhao in an interview with Fortune.

The conversation took place after the collapse of the Terra ecosystem. Binance supported the launch of Terra 2.0, but Zhao doubted the new network would have any value.

Some users wondered if the CEO of the exchange was in contact with Terraform Labs head Do Kwon and whether the platform was making money from this crash. Other accused Binance is putting users at risk for its decision to add a new LUNA to the list.

Zhao said the exchange does not make any money from investments in Terraform Labs. The platform backed the team with $3 million in 2018, and the resulting 50 million LUNA remained unsold and publicly available.

The top executive explained that all investments are long-term – Binance is “calm” about the failures of projects as they trust some to evolve into the “new Amazon, Google and Apple.”

According to Zhao, the exchange also did not work on UST trading due to zero commissions.

“We are more user-oriented. We have the trust of hundreds of millions of our customers. We don’t need to worry too much about ourselves. It’s kind of our way of thinking.” explained.

Zhao acknowledged that there were serious flaws in both the design of UST and the management of Terraform Labs. The latter was expressed by the stablecoin as a very late reaction to the loss of parity with the US dollar and the use of reserves to restore it.

Binance CEO also recalled his criticism on the subject. “silence” Before Kwon and offers to restart the project. He pointed out that there is almost no “perfect solution” for the latter.

The head of the exchange explained the support of Terra 2.0 with the need to ensure the continuity of liquidity in the interest of the majority of users. For those who do not own an asset, Binance has tried to communicate as much as possible about the inherent risks of the coin.

The CEO of the platform promised that if Terraform Labs releases a new version of UST, the compliance team will have to consider it as a completely new project, taking into account all the accumulated experience.

He stressed that while not excluding the asset from being traded, the stance will be critical. Binance CEO said that after Do Kwon’s affiliation with the failed Basis Cash project was revealed, the incident should have led to tightening of Due Diligence practices.

Zhao has responded to allegations that the founder of Terraform Labs and the Terra 2.0 project have been scammed by FatMan user. The Binance head instructed the exchange’s investigative team to examine them and, if confirmed, share the findings with law enforcement.

Recall that they formed an interdepartmental group in South Korea to investigate the downfall of Terra.

Later, it was learned that the Seoul Southern District Attorney’s office sent a subpoena to Terraform Labs employees.