The co-founder of Terraform Labs – Do Kwon, whose crypto ecosystem crumpled in a $40 billion wipeout in May, described to the Wall Street Journal that he yielded almost all his net worth in the crash.
In the interview with the Journal published on Thursday, he said, “this doesn’t bother me.” Kwon told the newspaper, “I live a fairly frugal life.” He was a billionaire when the Luna token Terraform Labs backed when it was trading near $100.
The coin is now trading at close to zero. Detectives in South Korea and the US are now peeking into the circumstances around the unraveling of TerraUSD; the stable coin Kwon backed crushed from its dollar peg in May. The event tapped out the savings of thousands of investors internationally and set off a broader 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 Tuesday.
The Securities and Exchange Commission (SEC) of the US is scrutinizing whether the marketing of TerraUSD before it was eradicated broken federal investor-protection regulations. However, Terraform Labs disclosed to the Journal it wouldn’t comment on any active investigations.
In an attempted comeback, Kwon established a new Luna coin last month that was allocated for free to owners of the original token. The latest one, dubbed Luna 2.0, has slumped to $1.97 from a high of $18.87.