Just-In: Terra Co Founder Refutes Fraud Accusations Over LUNA Crash

South Korean government and authorities have launched an in depth investigation over Terraform Labs after Terra’s historic collapse.

In the meantime, the blockchain firm’s co founder has refuted allegations of fraud, and that the crash was premediated.

No intention to cheat

According to Financial Times, Daniel Shin, Terraform Lab’s Co founder, has denied any kind of financial regulation breach. He mentioned that there was no intention to cheat any investors. The firm just wanted to innovate the payment settlement system with the help of blockchain.

Shin added that they were not aware of any fault in Terra’s tokens algorithm. The firm didn’t attempt to manipulate its prices. Meanwhile, as per reports, Terra’s core technology designer said that he contemplated a collapse since its inception. It added that as per the calculation the interest rate for the investors was proposed to be around 3.6%. However, Do Kwon, raised it to 20%, a week before the launch.

The nation’s local police agency informed that they are inquiring about the assertion that Terra’s employee stole some undisclosed amount of the firm’s Bitcoin holdings. However, according to the report, it has come to light that the suspect was trying to steal around 80 BTC (approx $2.4 million). At the time of the crash, the Terra foundation sold around 80,000 Bitcoins from its holdings. However, Terra highlighted that they still have 300 BTC left.

Shin to face on-sight inquiry over Terra and Chai

Daniel Shin also leads a digital payment company called Chai. As per the report, the regulating authorities are also planning to launch an on site review of it. It highlighted that the firm was earlier linked to the terraUSD/Luna network. Shin mentioned that the Chai his company had drawn off all the ties with Terra from 2020.

Meanwhile, Kwon hasn’t made any comment about it. The report states that he might be staying in Singapore.