Terraform Labs founder Do Kwon and Terraform have been accused by Terra insider FatMan. Binance CEO “CZ” has requested his investigative team to check into the accusations against Do Kwon and Terra 2.0.
Binance’s CEO has previously expressed his opposition to the UST algorithmic stablecoin concept and Do Kwon’s desire to revive the UST and LUNA coins. Furthermore, when it comes to listing the new LUNA cryptocurrency, Binance has chosen a careful approach. The coin saw listing in the exchange’s “innovation zone,” which is for high-risk tokens.
Binance To Investigate Against Do Kwon & Terra Allegations
Binance’s CEO “CZ” revealed he has been reading FatMan’s tweets against Do Kwon and Terra in an interview with Fortune on June 1. Also , he has requested his investigators to look into each of FatMan’s charges towards Do Kwon and Terra.
According to FatMan, “Terra allegedly influenced markets by bribing exchanges and third parties to cause consumers to lose billions of dollars, insider trading, tokenomics modifications, masking financial data in Kernal Labs’ cloud storage, and dodging taxes.” He also slammed Terra for failing to compensate small investors and those who suffered a loss in the UST stablecoin after the meltdown.
Binance has always engaged with law enforcement organizations to assist in discovering scams and frauds, according to “CZ.” To collect evidence connected to claims, the exchange will examine the existing data and investigate blockchain data.
Binance has always been open with its users. The exchange will aid in the prevention and control of negative conduct in the community. Furthermore, the link between Do Kwon and the collapse of the algorithmic stablecoin Basis Cash has shocked “CZ.”
The CEO of Binance has requested that his staff boost the procedure. FatMan has even expressed worries about Binance’s U.S. arm’s lack of responsibility and security procedures.
South Korea’s Stand Strong Against Terra & Do Kwon
The inquiry into the Do Kwon and Terra projects has increasing by the South Korean officials. Do Kwon and Terraform Labs have been sued, and tax fraud accusations have been brought against them.
To avoid similar occurrences, South Korea is forming a crypto monitoring council. Furthermore, numerous South Korean exchanges have said that they would not support Terra 2.0 or list LUNA 2.0