Terraform Labs president Do Kwon believes in the success of the Terra 2.0 project and does not consider himself a fraud. He stated this in an interview with The Wall Street Journal.

“I believe deeply that we can be stronger than before. […] Many developers are in the process of restarting their apps on the new network,” said Kwon.

After the collapse of the LUNA cryptocurrency and the algorithmic stablecoin UST, the Terraform Labs team suggested restarting the network. The new blockchain went live on May 28. Its support has been reported by leading cryptocurrency exchanges such as Binance, Huobi, and Kraken.

The collapse of the Terra ecosystem has had serious implications for the digital asset market. The depreciation of LUNA and UST has severely damaged Anchor Protocol users.

The incident also affected the solvency of major industry players: crypto lending platform Celsius was one of the largest holders of UST, and hedge fund Three Arrows Capital invested nearly 200 million in LUNA as part of its February token sale.

The situation around the project caught the attention of South Korean regulators. The Seoul Southern District Attorney’s Office also became interested in Terraform Labs’ activities.

In June, journalists learned that the US Securities and Exchange Commission has also launched an investigation into the people behind the UST stablecoin.

In a conversation with the WSJ, a Terraform Labs spokesperson said he would not comment on any law enforcement investigations. He described the incoming lawsuits as “groundless” and noted that the company intends to defend itself.

According to Do Kwon, he lost almost all of his wealth due to Terra’s collapse. He added that he does not consider himself a swindler, as he fully trusts the stability of the UST.

“I bet confidently and confidently supported UST because I believed in its sustainability and value proposition. I lost the bets, but my actions are 100% consistent with my words. “There is a difference between failure and fraud,” he said.

Recall that in June 2022, investors personally accused Terraform Labs and Kwon of making false statements about the stability of the UST.

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