Ex-Terra Employees Allege Do Kwon Masterminded Failed Stablecoin Basis Cash

The collapse of Terra's UST stablecoin sent shockwaves through the crypto world. Now, new allegations are surfacing, directly implicating Do Kwon, the CEO of Terraform Labs, in another failed stablecoin project: Basis Cash. Former employees of Terra are claiming that the developer was also the founder of another failed stablecoin project called Basis Cash, as reported by Coindesk.

According to multiple sources, including former Terra employees, UST’s Do Kwon was the mastermind of the failed stablecoin project called the Basis Cash, as per the learnings. The findings by Coindesk suggest that the CEO of Terraform Labs was one of the key figures behind Basis Cash, operating under an alias. This revelation raises serious questions about transparency and accountability within Terraform Labs and Do Kwon's history in the cryptocurrency space.

Basis Cash, like UST, aimed to maintain a stable value pegged to the US dollar. However, it ultimately failed to achieve this goal, leaving investors with significant losses. Kwon claims that one of those five employees was inspired by Basis, an earlier stablecoin project that would give Basis Cash its name, and “yield farms” that were utilized by the project.

If these allegations are true, it suggests a pattern of high-risk stablecoin ventures led by Do Kwon. This could further damage his reputation and increase scrutiny of Terraform Labs and its future projects. The investigation into Basis Cash and Do Kwon's involvement is ongoing, and more details are expected to emerge.

Stay tuned for updates as this story develops. We will continue to report on the latest developments regarding Do Kwon, Terraform Labs, UST, and the allegations surrounding Basis Cash.