Changpeng Zhao criticises Terra team’s actions

Changpeng Zhao, chief executive of the cryptocurrency exchange Binance, said he was “disappointed” by the Terra ecosystem team’s actions in the wake of the collapse of LUNA and UST. In his view, the developers endangered investors but did not take responsibility.

5. I am very disappointed with how this UST/LUNA incident was handled (or not handled) by the Terra team. We requested their team to restore the network, burn the extra minted LUNA, and recover the UST peg. So far, we have not gotten any positive response, or much response at all

— CZ 🔶 Binance (@cz_binance) May 13, 2022

“I am extremely disappointed with how Terra’s team handled (or failed to handle) the UST/LUNA incident. We asked them to restore the network, burn the extra LUNA, and restore the UST peg to the US dollar. So far we have not received a positive response, or any response at all,” Zhao wrote.

Zhao pointed to the Axie Infinity team as an example. He said that after the $625 million in crypto assets were stolen from the Ronin sidechain, the project’s developers “took responsibility, had a plan and were actively communicating with Binance.”

The cryptocurrency exchange Binance previously suspended trading for LUNA and UST on the spot market. It stressed that users would be able to withdraw funds once the Terra blockchain went live again.

Binance will suspend spot trading for the following trading pairs at 8:30am UTC, May 13 2022:

🔸 LUNA/BUSD
🔸 UST/BUSDhttps://t.co/U8u7bNWuZT

— Binance (@binance) May 13, 2022

According to Zhao, some users were unaware of Terra’s community decision to exponentially increase the supply of LUNA. He noted that they began buying the cryptocurrency without understanding the risks of further price declines. As a result, the exchange halted trading.

“We know there are different opinions in the community, but we considered that at this moment a trading halt is the best way to protect our users. We will continue to monitor the situation 24/7,” Zhao wrote.

On May 13, Terra validators again halted the blockchain amid LUNA trading below $0.001. According to the Terra Finder explorer, at the time of writing the network was producing blocks, though most were empty.

Since the blockchain was shut down, the Terraform Labs team has not issued any official statements.

OKX has delisted UST, LUNA, ANC and MIR.

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