Terraform Labs co-founder, Daniel Shin, work partner of Do Kwon, finally opened up on being accused of indulging in fraudulent behavior. TerraUST and Luna crashed to $0 last month as it plummeted straight 100% in the span of 3-days. The UST got depegged 1:1 from the USD and fell dramatically to $0 wiping away investments in a jiffy. This led to the creation of Luna 2.0 which was launched during the last week of May. The South Korean government has already launched 2 investigations into the matter and the inquiry is ongoing.
Read More: Do Kwon ‘Cleaning up Evidence’ After Terra Luna Crashed to $0?
Accusations against Terraform Labs management of having prior knowledge about the crash is making the rounds on social media. Also, Twitter user ‘FatManTerra‘ uploaded multiple accusations against Do Kwon and Daniel Shin alleging that the duo made millions with LUNC.
Also, around 81 investors from South Korea filed complaints against Terraform Labs at the Seoul Southern District Prosecutors’ Office. “Terraform founders and the company deceived investors with their flawed algorithmic coins”, read the documents.
Luna 2.0 Co-Founder Speaks up On The Accusations
Daniel Shin, finally opened up about the accusations and denied that Terraform Labs‘ management had prior knowledge about the crash. He revealed to Financial Times that there were no intentions of manipulating the price of TerraUST. He also stated that his team was not deceptive and answered every question thrown at them while it came down to $0.
“There was no intention of deception. We just wanted to innovate the payment settlement system with blockchain technology,” Shin told the Financial Times.
Shin added, “We were not aware of any flaws in the coins’ algorithm and there was no attempt at manipulating their prices.”
However, Do Kwon has not opened up about being accused of fraud and has mostly chosen to remain quiet. Do Kwon has also turned his Twitter handle ‘private’ making it difficult for others to contact or question him. Kwon is now believed to be in Singapore and not in South Korea.
At press time, Luna 2.0 was trading at $3.13 and is down 10.3% in the 24-hours day trade. The newly launched Luna has been trading on the backfoot from the day it was released on May 28, 2022.