CryptosHeadlines.com - The Leading Crypto Research Network
Do Kwon, one of the co-founders of Terraform Labs, has challenged the significance of leaked Slack conversations presented as evidence.
The discussions in question, involving co-founder Daniel Shin and Do Kwon, revolved around the idea of attracting investors through transaction manipulation.
In a court filing by the U.S. SEC, a Slack conversation from September 2019 between the co-founders of the company was introduced. According to this chat log, Kwon and Shin were deliberating on strategies to draw additional investors to Chai Corporation, a payment company situated in Seoul. Kwon and Shin established Chai in the middle of 2019, and the company collaborated, including sharing resources like employees, with Terraform until 2020, at which point they pursued separate paths.
Fabricating False Transactions
As revealed in the leaked conversation, Kwon had contemplated enhancing the project’s attractiveness to investors by fabricating fictitious transactions. Additionally, Kwon went on to provide more details, outlining that the fees generated from these transactions could potentially be utilized to gradually dismantle the system as Chai continued to grow.
Subsequently, Kwon proposed a confidentiality agreement to Shin, expressing his intent with the words, “I won’t tell if you won’t.” Furthermore, he asserted that it would pose challenges for investors to uncover the manipulation tactics. In contrast, Kwon refutes the allegations against him and contends that the evidence has been misconstrued.
Kwon and Shin, as per the information provided by his legal representatives, deliberated the option of staking LUNA tokens with validators as an alternative to orchestrating Chai transactions. The U.S. SEC has formally requested the extradition of Kwon to address charges linked to the Terra ecosystem’s downturn. Nevertheless, Kwon’s legal team is actively contesting this extradition request.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.