South Korea Issues Arrest Warrant for Do Kwon

A court in South Korea has issued an arrest warrant for Do Kwon, the founder of Terraform Labs, escalating its probe into the crypto ecosystem whose two tokens lost $40 billion in value in a span of days earlier this year. From a report: LUNA, the new token of the revived ecosystem, dropped as high as 48.4% to $2.23 apiece on the news, which was earlier reported by local media Yonhap, before recovering slightly. The South Korean court has issued arrest warrants for six people, the news outlet reported, adding that the prosecutors believe the individuals have violated the nation's capital market rules.

Oops

[gosso920]

Somebody forgot to make a payoff... *cough* *cough* contribution to the Policeman's Ball.

Jail for making software with a bug

[presidenteloco]

a new precedent?

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[gweihir]

When doing this intentionally and while providing financial services? No, not new at all.

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[presidenteloco]

Why would someone intentionally design and construct software which causes its stablecoin "product" to devalue rapidly?
That's a ridiculous statement. Sorry if you lost money, but that doesn't mean you should just make shit up out of spite.

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[gweihir]

I did not lose money. I am trying to see what the "bug" here could be.

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[presidenteloco]

Without getting into specifics which I don't have time to research, it's an algorithmic stablecoin. The algorithm is supposed to take various automated trading, issuance etc actions based on the price vs the target price, and possibly the velocity of divergence, in order to provide strong and SUFFICIENT negative feedback to the price change, at all times. It's a closed loop control algorithm. Clearly, this version of such an algorithm was not designed or implemented correctly. It was not sufficient in its n

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[gweihir]

Ah, I see you do not understand how these things actually work. Algorithmic "stable"-coins make a promise that is impossible to keep. It is not a flaw in the implementation. The problem rather is that it is fundamentally impossible to keep stability this way in the hard sense (i.e. can be mathematically proven). The only thing such a regulation algorithm (and that is what this is) can do is smooth out minor deviations somewhat. Even only going for perfect regulation in the face of minor changes makes the wh

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[presidenteloco]

I didn't say it needed to go for perfect regulation.

As a weak analogy, evolution of life maintains fairly good stability of the information (thus form and function) of living systems precisely by "learning" from / exploiting small instabilities that inevitably occur. It remains stable overall by changing at the edges (adapting), where the adaptation is, if you look at it, a form of micro-instability in the overall information, form, function of the system. But those micro-instabilities serve to achieve the

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[real_nickname]

There was no bug, everything worked as intended.

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[presidenteloco]

Actually it's a clear bug that it was vulnerable to rapid devaluation. Not being vulnerable to that would have been requirement number, let me see, 1, in design and construction of this cryptocurrency.

So....

[kwelch007]

Don't invest in Vaporware. It's fairly straight-forward.

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[gweihir]

Recognizing good, straight-forward advice requires common sense, which is a rare thing indeed.

This one made me blink twice

[Chris Mattern]

Because our company is integrating Terraform into our DevOps structure. Then a little web searching uncovered that Terraform Labs is not the same thing as HashiCorp Terraform.

How many billions?

[gnasher719]

They lost 48 billion dollars? With that amount of loss, there will be somebody coming after you.

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[presidenteloco]

Yeah, gang thugs / hitmen usually.

It's interesting when it's the government coming after you for accidentally losing peoples' money.

What does that say about the government and its justice system?