Do Kwon, a co-founder of Terraform, rejects the idea of using his Slack chat history as evidence in the ongoing SEC case over his alleged role in Terra’s failure.
The co-founders of Terra, Do Kwon and Daniel Shin, are mentioned in a September 2019 Slack chat that the US Securities and Exchange Commission (SEC) has included in a recent court filing.
The messaging history reveals that the two co-founders discussed using artifact tactics to expand Chai, a payment provider business that they both co-founded. Up until their separation in 2020, Terraform and Chai shared personnel and offices.
Kwon suggested to Daniel during the conversation that he may make fictitious transactions to increase Chai’s fees. Investors will eventually be drawn to Chai by the increased volume of transactions and earned fees.
Kwon continued by telling Daniel that he would make it difficult to identify any phony transactions. In a message, he stated, “All the power to those that can prove it’s fake,” adding, “I won’t tell if you won’t.”
The chat was extraneous and taken out of context, according to Kwon’s legal team, who rejected accepting it as evidence. According to his attorneys, founders discussed staking LUNA tokens with validators rather than creating fictitious Chai transactions.
The attorneys argued that the SEC misrepresented the facts in an unnecessary attempt to harm Mr. Kwon in a procedural motion unrelated to the merits of the SEC’s case.
Since the first day, the litigation involving Terraform, Do Kwon, and the SEC has drawn attention. The legal team for Kwon recently urged the US court to deny SEC’s request for extradition. Do Kwon is currently in Montenegro on bail.
More From The Kangaroo Times