Daniel Shin, co-founder of Terraform Labs, told the Financial Times that the company was not aware of “any flaws” in the blockchain algorithm. He further clarified that there was no intention to defraud the users.
Launched in January 2018, TerraForm Labs attracted mainstream attention while the crypto industry marched toward its enormous development achievements. In addition, Do Kwon, a former engineer at Apple and Microsoft, wrote the preliminary white paper for decentralized payment tokens and co-founded the company with Shin. Here, the latter experienced success milestones with Ticker Monster, a major Internet company.
In addition, the Chai payments platform, which was initially associated with TeraLabs, also clarified its zero exposure to the TeraKRW (KRT) stablecoin explosion of the ecosystem. After the stablecoin collapse it became clear that Kwon was behind Basis Cash, while another stablecoin project involving TeraUSD has lost $54 million.
Terralabs under investigation
The collapse resulted in much criticism from the stablecoin co-founder and doubts about his intentions for the project. Bill Ackman linked the project to a pyramid scheme and Senator Pat Tommy of Pennsylvania called Terra investors a ‘victim of fraud’.
Additionally, Terraform Labs is being investigated by the Seoul Metropolitan Police Agency, which has opened an investigation into embezzlement. Similarly, South Korean officials, the Republic’s Supreme Prosecutor’s Office, have also launched an investigation into the Terraform Labs explosion.
