Do Kwon and Daniel Shin, co-founders of Terraform Labs, discussed executing fraudulent transactions in leaked Slack discussions.
Do Kwon, a co-founder of Terraform Labs, has disputed the validity of disclosed Slack chats used as proof. During the conversation, co-founder Daniel Shin and I talked about tricking financial systems to draw in investors. The co-founders’ September 2019 Slack communication was disclosed by the United States Securities and Exchange Commission (SEC) in a recent court filing.
According to the message report, Kwon and Shin were actively formulating strategies to pique investors’ interest in Chai Corporation, a payments provider based in Seoul. Midway through 2019, Kwon and Shin created Chai, which they shared alongside Terraform’s employees and headquarters until the two businesses’ separation in 2020.
Kwon attempted to generate fictitious transactions to attract investors, according to the hacked chat exchange: “I can just make phoney transactions that appear legitimate.”. In addition, Kwon explains that as Chai develops, the transactions may be gradually phased out and will result in fees. Following that, he makes an effort to seal a secret agreement with Shin. In case you won’t, I won’t tell, Kwon said. He also said that investors would have a difficult time figuring out the manipulation strategies.
He declares, “All the power to those that can prove its fake,” adding that he will use every means at his disposal to keep the scam from being discovered: “Because I’ll make sure it’s undetectable,” the speaker said.
Kwon, however, denies the accusations made against him and claims the evidence was misinterpreted. His defence team contends that Kwon and Shin discussed the prospect of staking LUNA tokens with validators rather than producing phoney Chai transactions:
Last but not least, the SEC presents false information in an unnecessary attempt to harm Mr. Kwon in a procedural motion that has nothing to do with the strength (or weakness) of the SEC’s case.
To put it another way, “the SEC’s motion relies on misrepresentations about irrelevant evidence to support its spurious claim that it has been unable to get discovery from Mr. Kwon,” Kwon’s attorneys stated.
Kwon’s attorneys are currently urging a U.S. federal court to deny the SEC’s request to extradite him to the country in connection with the collapse of the Terra ecosystem.
His legal team claimed that the motion was “impossible” because he was being held in Montenegro without a set timetable for release. Kwon was convicted of passport fraud before this occurred.