Terraform co-founder Do Kwon says he lost nearly all his wealth in Terra-Luna crash

June 23, 2022, 9:50 AM UTC

Terraform Labs co-founder Do Kwon, whose crypto ecosystem collapsed in a $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. “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 $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 U.S. 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.  

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