Daniel Shin, the co-founder of Terraform Labs, has come out in denial of the $60 billion embezzlement claim on Terraform Labs.
He has told the Financial Times of the company’s unawareness of flaws in the blockchain algorithm. Shin is a very influential entrepreneur in South Korea in the tech industry. He supports his dismissal of the fraud by saying he had no intentions of deceiving his clients.
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The history behind the fraud
The launch of The Terraform Labs took place in January 2018. At this time, the crypto industry had taken root, expanded massively, and attracted global clients.
Shin had partnered with Do Kwon, a Microsoft engineer, to found the company. Kwon penned the initial white paper for a decentralized payment platform. On the other hand, Shin was already successful in being a major internet company and Ticket Monster and expected more after selling the e-commerce site.
The Chai payment platform they were working on soon stopped partnering with Terraform Labs since it had no experience with the TerraKRW (KRT) after the ecosystem was imploded.
When the TerraUSD (UST) failed, Reports reveal that Kwon was the one in charge of Basis Cash, a failed algorithmic stablecoin project which made a loss of about $54 million.
The loss of $60 billion in the Terra washout has raised a suspension on project co-founders on what they intend to do with the project. According to U Today’s report, Bill Ackman’s billionaire has likened the scenario to a pyramid scheme. Pat Toomey, the senator of Pennsylvania, has also accused the Terra co-founders of fraud.
The Metropolitan Police Agency has launched an investigation into the fraud in the Terraform Labs. On the same note, the Supreme Prosecutors’ office of the Korean republic started a probe into the mischievous implosion.
He has told the Financial Times of the company’s unawareness of flaws in the blockchain algorithm. Shin is a very influential entrepreneur in South Korea in the tech industry. He supports his dismissal of the fraud by saying he had no intentions of deceiving his clients.
