South Korea Seeks the Arrest of Terraform Labs Founder Do Kwon

It's extra damning if you realize that the team behind TerraForm Labs KNEW there was no way to make the mechanism work.

After all, they tried it before, and failed, see Basis Cash: https://www.coindesk.com/tech/2022/05/11/usts-do-kwon-was-be...

What is saddening me more is that all these teams are now making the same mistakes the cypherpunks in the'80, '90' and early '00 made.

The problem with any stablecoin is that you cannot fake trust. Either you have dollars/gold in a vault or you don't.

The solution that bitcoin came up with (for the lack of gold or dollars in a vault) was to provably spend or lock-in, not gold or dollars that can be taken out again, but electricity itself. The expenditure was done through the hashing algorithm HashCash, and by the very nature is this process, the electricity cannot be taken out of the system again.

An interesting paper on this subject can be found here: https://cacm.acm.org/magazines/2017/12/223058-bitcoins-acade...

Not to be confused with Terraform Industries. One hopes the Labs name will be retired before the other needs to scale up.

It seems "prosecutors [are] reportedly charging that UST and luna should have been classified as "investment contract securities." (https://www.cnet.com/personal-finance/crypto/terra-founder-d...)

It took me more time than it probably should have to find details on what exactly the warrant was for.

Its interesting how South Korean regulators have been completely useless at reigning in the country’s massive mafia-like chaebols but instead seems to be focusing entirely on minor tech sectors.

-- these two interviews with Do Kwon are very interesting --

https://www.youtube.com/channel/UCLaa5cNN89IN0aLfiz5S49A/vid...

Version without paywall: https://archive.ph/E1F9Y