Terraform Labs co-founder Do Kwon disputes the significance of the exposed Slack messages presented as evidence. The chat included discussing trading operations to attract investors with co-founder Daniel Singh.
The U.S. Securities and Exchange Commission (SEC) included Slack conversations between co-founders dating back to September 2019 in a recent court case. filing Back in September 2019.
Message reports show that Mr. Kwon and Mr. Shin were actively brainstorming strategies to increase investor interest in Chai Corporation, a Seoul-based payments provider.
Chai was founded by Kwon and Shin in mid-2019 and shared offices and staff with Terraform until the companies split in 2020.
According to leaked message exchanges, Kwon intended to create fake trades to make them more attractive to investors.
“You just create fake transactions that look real.”
Kwon further elaborated that transactions incur fees, which may be phased out as Chai grows.
He then tries to make an agreement with Shin to keep the plan a secret. “If you don’t say it, I won’t say it,” Kwon said.
He further argued that it will be difficult for investors to uncover manipulative tactics.
“We urge all those who can prove that it is a fake to do everything possible,” he said, adding that he would make every effort to prevent the scheme from being exposed.
“I’ll do my best to stay inconspicuous.”
However, Mr. Kwon to object He claimed that the evidence against him was taken out of context.
His legal team claims that Kwon and Shin talked about the possibility of staking LUNA tokens with validators rather than creating fake Chai transactions.
“Finally, the SEC misrepresented evidence in an unreasonable effort to prejudice Mr. Kwon in procedural allegations that had no bearing on the merits (or lack thereof) of the SEC’s case. ing.”
“In other words, the SEC’s complaint relies on misrepresentations regarding irrelevant evidence to support its false claim that it was unable to obtain discovery from Mr. Kwon,” Kwon’s attorneys added. Ta.
Related: Do Kwon exchanged illegal funds from LUNA to Bitcoin: South Korean prosecutors
Meanwhile, Kwon’s lawyers are asking a US federal court to deny the SEC’s request to extradite Kwon to the US due to the collapse of the Terra ecosystem.
His lawyers said the request was “impossible” because he is being held in Montenegro with no scheduled release date. This comes after Kwon was found guilty of passport fraud.
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