Terraform Labs Co-Founder Dismissing Allegations Regarding Fraud: Says Had No Idea Of Any Flaws

Daniel Shin, co-founder of Terraform Labs, denying all the fraud allegations, said that the company had no clue about any flaws in the algorithm of the blockchain. 

Shin is among the most acclaimed tech entrepreneurs in South Korea, further said that the firm never had any intentions of deceiving users.

Following the enormous growth of the crypto industry Terraform Labs was launched in January 2018. Soon after, it started gaining mainstream attention. 

Shin and Do Kwon together founded the company. Kwon has experience working in Apple and Microsoft, and initially devised the white paper for a decentralized platform.

Shin had already experienced great success with TicketMonster, a major internet company, but he sought to have the next big thing after selling his e-commerce site. 

Initially, both the founders were working on the Chai payment platform. Later, the platform quietly separated from Terraform Labs. Chai also made it clear that it had no exposure to the TerraKRW (KRT) stablecoin, after the collapse of the ecosystem. 

Following the crash of TerraUSD (UST), it was revealed that Kwon was the one behind Basis Cash. For the uninitiated, Cash was another unsuccessful algorithmic stablecoin project that suffered losses worth $54 million.

The Terra meltdown that washed out $60 billion Terra has led to many questions regarding the real intentions of the project’s co-founders. Many speculations have been doing rounds. Billionaire Bill Ackman even said the project might be linked to a pyramid scheme. Pat Toomey, a Pennsylvania Senator, even stated that Terra investors put forward the possibility that the Terra investors could be victims of fraud. 

Meanwhile, the latest report reveals that the Seoul Metropolitan Police Agency recently began an embezzlement investigation into Terraform Labs.

The Supreme Prosecutors’ Office of the Republic of Korea has also begun a probation into the sudden melodramatic collapse of Terra. 

The price of Luna 2.0 experienced a new low just after Terra’s ecosystem life, the price of Luna 2.0 experienced a new low as it decreased by 77%. 

FatMan, who claimed to be a Terra insider, have prompted these speculations after he highlighted that Kwon and his firm Terraform Labs are lying that they would make the new network community-owned. He further claimed that Terraform has 42M LUNA, that are worth over $200m.

Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.

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