Binance CEO on $1.6 billion loss in Terra Investments; Why he never talked about doing Kwon

Binance CEO Changpeng Zhao says his company originally invested $3 million in the high-profile Earth LUNA/USD project in 2018. In return, Binance received approximately 50 million LUNA.

But in a recent post on Twitter, he indicated that Binance ultimately lost $1.6 billion in its Terra investment.

Zhao’s tweet comes amid rumors that Binance could potentially benefit from the demise of the Terra ecosystem. We also wonder if the CEO of Binance communicated with the co-founder of Terra Do Kwon during the mega crypto crisis.

Binance also came under fire after announcing support for Terra 2.0, the new LUNA currency.

In a recent interview, Zhao said that there are errors in the design of TerraUSD USD/USD and Terra, which resulted in the collapse of the Terra ecosystem.

Also Read: UK Financial Regulator Orders Crypto Exchange Binance to Halt Activities in the Country

While discussing Terraform Labs and its leader Kwon, Zhao said he never spoke to Kwon directly, not even to this day.

“During the investment phase, I didn’t speak to him. I never even had a Zoom call with him. I never met him in person. Our investment team discussed everything with him. We have a very fast internal review process, which I am part of, but I have not had to speak to him. Throughout this incident, our team has spoken to him. Unfortunately, he has been quite slow to respond “, did he declare.

Speaking about Terra 2.0 and the recovery plan, Zhao said, “On Do Kwon’s recovery plan, I expressed concern or disagreement with some of the approaches taken.”

“I think they took a snapshot very early on. It sort of undoes a lot of transactions on the blockchain, as well as a lot of transactions that were done after the crash,” he added.

Photo courtesy: Binance