The founder of Ethereum was ready for the collapse of the LUNA cryptocurrency

Vitalik Buterin, co-founder and developer of the Ethereum cryptocurrency, said he was ready for the LUNA cryptocurrency to collapse because he immediately realized that the Terraform Labs team was manipulating the market. The father of Ethereum said this in an interview with The New York Times.

According to Buterin, the Terra fiasco proved once again that decentralization does not solve all problems. Even if the algorithm is open and transparent, the collapse is still inevitable if the project is run by fraudsters like Do Kwon. According to the co-founder of Ethereum, the failure of LUNA was caused by a large number of manipulations by the Terraform Labs team and an ineptly built blockchain structure.

Buterin also noted that the fate of Terraform Labs' multimillion-dollar bitcoin reserves is still unknown. Only recently, after Interpol issued a «red notice «to law enforcement agencies around the world for the arrest of Terraform Labs co-founder Do Kwon, 3313 BTC were moved from the Binance wallet Luna Foundation Guard (LFG) to cryptocurrency exchanges Kucoin and OKX. However, Vitalik Buterin is convinced that this is only a small part of Terraform Labs' funds.

As a reminder, Terraform Labs is protesting against the arrest warrant issued for Kwon and his five associates. Law enforcers claim that Kwon violated the country’s capital markets law after prosecutors recognized the Luna Classic cryptocurrency as a security. The company denies it. «Like most in the industry, we believe that Luna Classic is not and never has been a security, despite any changes in interpretation that Korean financial officials may have recently made,» a Terraform Labs spokesperson told reporters.