Terraform Labs co-founder Do Kwon has questioned the significance of exposed Slack messages presented as evidence. The talk involved discussing transaction manipulation to attract investors with co-founder Daniel Shin.
The United States Securities and Exchange Commission (SEC) included in a recent court the Slack conversation between the co-founders, which dates back to September 2019. presentation It dates back to September 2019.
The message report indicates that Kwon and Shin were actively brainstorming tactics to increase investor interest in Seoul-based payments provider Chai Corporation.
Chai was founded by Kwon and Shin in mid-2019 and shared offices and staff with Terraform until two companies separated in 2020.
According to the leaked message exchange, Kwon intended to create fake transactions to make them more attractive to investors:
"I can create fake transactions that look real."
Kwon further explains that the transactions will generate fees and may be phased out as Chai grows.
He then tries to make a pact with Shin to keep the plan confidential. "I won't say it if you don't," Kwon stated.
He further stated that it will be challenging for investors to uncover manipulation tactics.
โAll power to those who can prove it false,โ he says, adding that he will do everything possible to prevent the plan from being exposed:
"Because I will do everything I can to make it imperceptible."
However, Kwon refutes the evidence against him, claiming that it was taken out of context.
His legal team claims that Kwon and Shin discussed the possibility of staking LUNA tokens with validators instead of creating counterfeit Chai transactions:
"Finally, the SEC misrepresents the evidence in its gratuitous effort to prejudice Mr. Kwon in a procedural motion that has nothing to do with the merits (or lack of merit) of the SEC's case."
"In other words, the SEC's motion relies on misrepresentations about irrelevant evidence to support its spurious claim that it has failed to obtain evidence from Mr. Kwon," Kwon's lawyers added.
Related: Do Kwon converted illicit LUNA funds to Bitcoin: South Korean prosecutors
Meanwhile, Kwon's lawyers are pressing a US federal court to reject SEC request extradite him to the United States for the collapse of the Terra ecosystem.
His legal team stated that the request was โimpossibleโ because he was detained in Montenegro with no expected release date. This follows Kwon being found. guilty of passport fraud.
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