Terraform Labs co-founder Do Kwon refuted the importance of Slack messages as evidence, which included discussions with his co-founder Daniel Chen about manipulating transactions on the Terra blockchain to attract investors.
The US Securities and Exchange Commission (SEC) listed a Slack conversation between the co-founders, dating back to September 2019, in a recent court filing. Deposit.
The letter report notes that the co-founders were brainstorming strategies to increase investor interest in the Terra blockchain. However, Kwon intended to shape the transactions to make them more attractive:
“I can only create fake transactions that look real.”
Kwon also explains that these transactions will generate fees and could be phased out as Chai (XCH) grows.
Kwon then appears to try to make a deal with Shin to keep the plan secret. “I won’t tell you if you won’t do it,” he said.
He also stressed that it would be difficult for individuals to detect manipulation methods.
“All power to those who can prove its falsity,” he says, adding that he will do everything in his power to prevent the scheme from being exposed:
“Because I will do my best to make it indistinguishable.”
However, Kwon Refutes The evidence is against him, claiming that it was taken out of context.
His legal team claims that Kwon and Shin talked about the possibility of storing LUNA tokens with validators instead of creating fake CHI transactions:
“Finally, the SEC erred in the evidence in its unjustified effort to bias Mr. Kwon on a procedural motion unrelated to the merits (or lack thereof) of the SEC’s case.”
“In other words, the SEC’s motion relies on misrepresentations about irrelevant evidence to support its false claim that it was unable to obtain discovery from Mr. Kwon,” Kwon’s lawyers added.
RELATED: Do Kwon Transferred Illicit Funds from LUNA to Bitcoin: South Korean Prosecutors
Meanwhile, Kwon’s lawyers are pressing a US federal court to reject the SEC’s request to extradite him to the US over the collapse of the Terra ecosystem.
His legal team declared the request “impossible” due to his detention in Montenegro without a date set for his release after he was convicted of forging a passport.
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