Terraform Labs was not aware of any flaw in its algorithm, says co-founder
Daniel Shin, co-founder of Terraform Labs, recently told the Financial Times that the company was not aware of “any flaws” in the blockchain algorithm.
One of South Korea’s best-known tech entrepreneurs, Shin, dismissed the allegations of fraud, claiming that there was no intention to defraud users.
Terraform Labs was launched back in January 2018 after the massive growth of the cryptocurrency industry and gaining mainstream attention.
Do Kwon, a former Apple and Microsoft engineer who wrote the initial white paper for a decentralized payments platform, co-founded the company with Shin. The latter had already achieved significant success with major Internet company Ticket Monster, but was looking for the next big thing after selling the e-commerce site.
They were initially working on the Chai payments platform, which quietly ended its partnership with Terraform Labs. Chai also clarified that it had no exposure to the TeraKRW (KRT) stablecoin after the ecosystem exploded.
Following the collapse of TeraUSD (UST), it was revealed that Kwon was behind Basis Cash, another failed algorithmic stablecoin project that lost approximately $54 million worth of value.The $60 billion Terra washout raised many questions about the real intentions of the project’s co-founders. As U.Today reports, billionaire Bill Ackman compared the project to a pyramid scheme. Senator Pat Tomei of Pennsylvania said Terra investors could be victims of fraud.
As U.Today reports, the Seoul Metropolitan Police Agency recently launched an investigation into embezzlement at TerraForm Labs.
Last month, the Supreme Prosecutor’s Office of the Republic of Korea also launched an investigation into Terra’s dramatic explosion.