Do Kwon, the embattled Terraform Labs founder, finally broke his Twitter silence earlier today, reiterating his belief that the crypto world requires censorship-resistant decentralized money.
“Decentralized networks need decentralized money – obvious today more than ever,” Do Kwon tweeted.
Unsurprisingly, Do Kwon’s bravado enraged several members of the Twitter crypto community. Even though the Terra founder disabled comments on the post, users responded with quote tweets.
It is no secret that Do Kwon’s attempts at decentralized money failed miserably, with many believing that he defrauded users. Notably, the de-pegging of Do Kwon’s stablecoin brainchild UST, which was supposed to bridge the decentralized money gap by being backed by Bitcoin reserves, rendered investor LUNA and UST holdings worthless overnight. As a result, Do Kwon and his firm are still being investigated in South Korea and the United States, even though they are facing multiple class action lawsuits.
Circle, the issuer of the USDC stablecoin, has blocked all Ethereum addresses associated with Tornado Cash, freezing over 75,000 USDC. Notably, the move came in response to a US ban on the Ethereum-based cryptocurrency mixer. The move has since raised concerns among privacy advocates in the crypto space about the lack of stablecoin censorship resistance.
Tornado Cash is a decentralized application that allows users to hide a trail of cryptocurrency transactions on the blockchain. While privacy advocates argue that these tools exist for entirely legal reasons, regulators are concerned about the lack of controls and recent use of these tools in headline-grabbing crypto exploits.
Attackers used the dApp in the Ronin bridge hack, which resulted in the theft of over $600 million in crypto assets, to funnel their loot. The same was true of the Harmony Bridge attack.