Terra Co-Founder Daniel Shin Denies Responsibility for Collapse
Lawyers representing Daniel Shin, co-founder of Terraform Labs, have asserted his innocence in the collapse of Terra and the subsequent failure of its tokens Luna Classic and UST. Shin’s defense team argued in a South Korean court that fellow founder Do Kwon was to blame for the company’s crash. They also pointed to issues with the Anchor protocol as a contributing factor.
The defense claimed that Kwon orchestrated external attacks on Terra and criticized the management of Anchor, alleging an unsustainable business model. The yield-generating platform allowed stablecoin holders to earn interest without worrying about market volatility. Shin left Terra and Kwon in 2020 due to irreconcilable differences.
Kwon, who has been detained in Montenegro, may face similar charges if extradited to South Korea. Meanwhile, Terra has appointed a new CEO and Kwon’s legal team is seeking to dismiss a lawsuit filed by the U.S. Securities and Exchange Commission.
Hot Take: Terra Co-Founder Claims Innocence in Collapse Amidst Legal Battle
Amidst ongoing legal proceedings, Terra co-founder Daniel Shin has maintained his innocence in the collapse of the company. His lawyers argue that fellow co-founder Do Kwon was responsible for Terra’s crash and cited issues with the Anchor protocol as additional reasons for its downfall. While Shin faces charges including embezzlement and fraud, Kwon is currently detained in Montenegro and may face extradition to South Korea.
The case highlights the challenges faced by cryptocurrency projects when internal disputes arise and how these conflicts can have far-reaching consequences. As Terra moves forward under new leadership, it remains to be seen how this legal battle will unfold and what impact it will have on the future of the project.
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