Terra founder Do Kwon vows to communicate proactively with press

Terraform Labs' founder and CEO Do Kwon has reemerged on Twitter, after making his account private for a couple of days. 

Two weeks after Terra’s ecosystem sought redemption through the launch of LUNA 2.0 and the following airdrop, the token has seen its value plummet 77% to new lows. 

On Thursday, Kwon tweeted, "While most of our efforts had [sic] been spent on Terra 2.0 and making sure ecosystem developers can find a home after the depeg incident, we will soon be more proactive in communicating with the press and getting the right information out there."

Kwon has been compared to Tesla founder Elon Musk for not engaging with the press and communicating directly with his audience on the social media platform.

The shift in Kwon's communication strategy may be related to the fact that he is now facing legal challenges on multiple fronts and across the Pacific Ocean.

Following the failure of stablecoin TerraUSD (UST) last month, a US federal judge has ordered Kwon to comply with an earlier SEC subpoena that he sought to avoid.

The Securities and Exchange Commission (SEC) began investigating a Terraform Labs project Mirror Protocol last year and served Kwon a subpoena at a New York conference on Sept. 20, 2021.

Mirror is a decentralized finance (DeFi) protocol on the Terra blockchain. The protocol enabled users to mint synthetic assets that mirror the price of securities using UST as collateral.

Kwon had sued the SEC. But a district court concluded the SEC complied with its rules in serving the subpoena; and that the agency has sufficient jurisdiction despite Kwon being a South Korean citizen with his business registered in Singapore.

The 2nd US Circuit Court of Appeals upheld that ruling on Wednesday, rejecting Terraform Labs and Kwon’s appeal.

Write to Jin-Woo Park at jwp@hankyung.com
Jee Abbey Lee edited this article.