Here’s why Do Kwon says a mole could have been responsible for Terra’s fall! “If you’re asking me whether there was a mole at Terraform Labs, that’s probably ‘yes’.” Do Kwon stated.
Do Kwon’s Interview
On the 15th of August, for the first time since Terra’s big collapse earlier this year, Do Kwon, the co-founder of Terra opened up about everything in a recent interview with the crypto media startup, Coinage.
EXCLUSIVE: @stablekwon Breaks His Silence.
Coinage Episode 0 — Inside Crypto’s Largest Collapse with Terra Founder Do Kwon
— Coinage (@coinage_media) August 15, 2022
Do Kwon talked about a lot of things in this interview, including what happened leading up to the collapse, how it happened, his team’s actions in response to the multi-million dollar collapse and how he felt after the big fall of both Terra and UST.
Suspected Mole In Terraform Labs
Kwon stated his beliefs that one of the biggest reasons for why the UST had depegged so hard in the first place was because of a suspected mole, an insider who took advantage of the information they had on Terra’s vulnerability.
It was said that on May 7th, Terraform labs executed an unannounced transfer of funds between trading pools, after which these insiders sold off $200 million worth of UST at the exact same time. This caused a massive imbalance in the trading pool and caused UST to depeg from $1.
“The only people that knew that were TFL employees,” Kwon said about Terraform’s transfer of funds between trading pools, “so if you’re asking me whether there was a mole at Terraform Labs, that’s probably ‘yes’.”
He still admitted responsibility for the depegging of UST though, adding “I, and I alone, am responsible for any weaknesses that could have been presented for a short seller to start to take profit.”
What Next For Terra
Despite currently facing allegations of fraud in South Korea, Do Kwon admits that the authorities in South Korea haven’t actually filed charges against him, let alone get in touch with him at all.
When asked if he will return to South Korea from where he is living in Singapore now, Kwon responded “It’s kind of hard to make that decision, because we’ve never been in touch with the investigators. They’ve never charged us with anything.”
“So what we’re going to do is we’re just going to put out the the facts as we know them. We’re going to be totally honest and deal with whatever consequences as they may be.“