Daniel Shin, the co-founder of Terraform labs, conveyed to Financial Times that the company was not aware of “any flaws” in the blockchain’s algorithm. He further clarified that there had been no intention of deceiving users.
The Terraform Labs, launched in January 2018, attracted mainstream attention while the crypto industry geared towards its massive growth achievements. Further, Do Kwon, the Former Apple and Microsoft engineer, has penned the initial white paper for a decentralized payments token and co-founded the company with Shin. Here, the latter experienced the milestone of success with a major internet company, Ticker Monster.
In addition to this, the Chai payment platform, which was initially bound with TerraLabs had also clarified its zero exposure to the TerraKRW (KRT) stablecoin implosion of the ecosystem. It became clear after the collapse of stablecoin that Kwon was the one behind the Basis cash, whereas another stablecoin project bound with TerraUSD has experienced a loss of $54 million.
TerraLabs Under Investigation
The collapse resulted in much criticism of the co-founder of stablecoin and his intentions for the project were doubted. Bill Ackman linked the project to a pyramid scheme and Pennsylvania Senator Pat Toomey called the Terra investors ‘victims of fraud’.
Additionally, Terraform Labs are under investigation by the Seoul Metropolitan Police Agency which has started an embezzlement investigation. Similarly, the South Korean officials, the Supreme Prosecutors Office of the Republic, have also launched an investigation of the Terraform Labs implosion.