Terraform co-founder Do Kwon denies accepting Slack chat history as evidence in the ongoing SEC lawsuit over his alleged involvement in the Terra collapse.
In a recent court filing, the US Securities and Exchange Commission (SEC) brought a September 2019 Slack conversation between the co-founders of Terra – Do Kwon and Daniel Shin.
The messaging history shows that both the co-founders were in talks to employ artifact tricks in order to grow Chai, a payment provider company that was also founded by them both. Chai and Terraform had shared offices and staff until the two firms split in 2020.
In the conversation, Kwon presented to Daniel the idea to create fake transactions to boost fees for Chai. It will eventually drive investors to Chai, attracted by the higher number of transactions and generated fees.
Kwon further told Daniel that it would be complicated to findout aboutt fake transactions as he would make them unidentifiable. “All the power to those that can prove its fake,” he said in a message while asserting that “I won’t tell if you wont.”
However, Kwon’s legal team denied accepting the conversation as proof, saying it’s irrelevant and taken out of context. His lawyers claimed that the founders talked about staking LUNA tokens with validators and not fake Chai transactions.
“The SEC misstates evidence in its gratuitous effort to prejudice Mr. Kwon in a procedural motion having nothing to do with the merits of the SEC’s case,” said the lawyers.
The lawsuit between the SEC and Do Kwon has been conspicuous since the first day. Recently, the legal team from Kwon asked the US court to reject SEC’s extradition request. Do Kwon is currently out on bail in Montenegro.