Terraform Labs wasn’t aware of any flaws in its algorithm, co-founder says
Terraform Labs co-founder Daniel Shin recently told the Financial Times that the company is not aware of “any flaws” in the blockchain’s algorithm.
Terraform Labs co-founder denies accusations of fraud
Shin, one of the most famous tech entrepreneurs in South Korea, denied the fraud allegations, insisting that there was no intention to deceive users. Terraform Labs was launched back in January 2018 after the massive growth of the crypto industry and caught everyone’s attention.
Former Apple and Microsoft engineer Do Kwon, who wrote the original white paper for a decentralized payments platform, co-founded the company with Shin. The latter had already reached significant success with major internet company Ticket Monster, but he was looking for the next big thing after selling the e-commerce site.
They were originally working on the Chai payment platform, which has quietly ended its partnership with Terraform Labs. Chai also clarified that they had no exposure to stablecoin TerraKRW (KRT) following the collapse of the ecosystem. After the collapse of TerraUSD (UST), it turned out that Kwon was the man behind Basis Cash, another algorithmic stablecoin project that failed and lost about $54 million in value.
Terra’s $60 billion was washed away leading many to question the true intentions of the project’s co-founders. Billionaire Bill Ackman likened this project to a pyramid scheme. Pennsylvania State Senator Pat Toomey suggested that Terra investors could be victims of scams. The Seoul Metropolitan Police Agency recently started an embezzlement investigation into Terraform Labs.
Last month, Korea’s Supreme Prosecutors’ Office also conducted an investigation into Terra’s dramatic explosion.
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