Daniel Shin Blames Terraform Collapse on Do Kwon's Management: Report

Daniel Shin, the co-founder of collapsed stablecoin issuer Terraform Labs, blamed erstwhile CEO Do Kwon for the company's implosion successful May 2022 astatine his trial, South Korean quality level Munawa Broadcasting Co. reported Monday.

Shin was indicted successful April by South Korean authorities for his affiliation with the multibillion-dollar crypto endeavor and charged him with violating capital-markets law. His lawyer said astatine the clip that Shin had near the institution 2 years earlier the failure. His lawyers reiterated the departure during the proceedings successful South Korea, saying helium "parted ways" with co-founder Kwon successful 2020, according to the report.

"The origin of the coin plunge was the unreasonable cognition of the Anchor Protocol conducted by CEO Kwon and outer attacks. It has thing to bash with Shin,” a lawyer reportedly said.

Anchor protocol was a lending level built connected Terra that allowed investors to gain precocious yields connected their deposits and get against their crypto holdings. After the terraUSD (UST) stablecoin mislaid its peg to the U.S. dollar up of the collapse, deposits connected Anchor took a plunge, contributing further to the crisis.

While Shin is facing proceedings successful South Korea, Kwon is jailed successful Montenegro for possession of falsified documents. After his word is served successful the European country, Kwon faces extradition to South Korea oregon the U.S.