According to the screenshots, Do Kwon said it was possible to fake transactions on the Terra blockchain to help attract investors for Chai Corporation.
Revealing messages about Do Kwon faking transactions on the Terra blockchain
According to a recent court filing, the SEC provided screenshots of conversations on the messaging app Slack between Terraform Labs co-founders Do Kwon and Daniel Shin.
During the conversation, Kwon was convincing Shin that he could fake transactions on the Terra blockchain, in order to attract investors for Chai Corporation.
Chai Corporation is a payment service provider headquartered in Seoul, South Korea. Chai was founded by Kwon and Shin in mid-2019 and shared offices and staff with Terraform Labs until the two companies separated in 2020.
Chai claims to use the Terra blockchain to process and settle transactions, as part of the Terra (LUNA) ecosystem.
However, in its lawsuit, the SEC accused Kwon and Terraform Labs of misrepresenting the truth about Chai. To date, this agency has released evidence to support the above argument.
The Slack message shows Do Kwon trying to convince Daniel Shin to allow him to fake transactions on the Terra blockchain, to show that Chai actually processes a lot of blockchain payment transactions, thereby increasing his trust. investors in the project.
Source: Docdroid
"I can create fake transactions that look real...
.... So I will try my best to make the transaction unrecognizable as fake."
Kwon further asserted that it is very difficult for investors to detect manipulation tactics.
Do Kwon's side quickly denied the above accusations. This person's legal team claims that Kwon and Shin were only discussing the possibility of staking LUNA using a validator, not creating fake Chai transactions.
"The SEC presented false evidence to disadvantage Mr. Kwon and did not add any value to the lawsuit.
This move is only for the purpose of false propaganda to reinforce the SEC's baseless argument."
As Coin68 reported, Do Kwon's defense team objected to the SEC's request, affirmed that Kwon could not be extradited to the US. Because this person is serving a sentence in Montenegro for using a fake passport.
On the other hand, Kwon is also facing criminal charges from the US Department of Justice (DOJ)..
