Terraform Labs co-founder Do Kwon has refuted the significance of Slack messages as evidence, which involved discussions with his co-founder Daniel Shin about manipulating transactions on the Terra blockchain to attract investors.
The United States Securities and Exchange Commission (SEC) included the Slack conversation between the two co-founders, which was dated back to September 2019, in a recent court filing.
The message report suggests the two co-founders were brainstorming strategies to increase investor interest in the Terra blockchain. However, Kwon showed the intention of influencing transactions to create a more appealing image:
Kwon further elaborates that these transactions will generate fees and can be gradually phased out as Chai grows.
Kwon then appears to attempt to make a pact with Shin to keep the plan confidential. "I wont tell if you wont," he stated.
He further asserted that it will be challenging for individuals to uncover the manipulation tactics.
“All the power to those that can prove its fake,” he states, adding that he will be making every effort to prevent the scheme being exposed:
However, Kwon refutes the evidence against him, alleging it was taken out of context.
His legal team claim that Kwon and Shin spoke about the possibility of staking LUNA tokens with validators, rather than creating counterfeit Chai transactions:
“In other words, the SEC’s motion relies on misrepresentations about irrelevant evidence to support its spurious claim that it has been unable to get discovery from Mr. Kwon,” Kwon's lawyers added.
Related: Do Kwon converted illicit funds from LUNA to Bitcoin: S.Korean prosecutors
Meanwhile, Kwon's lawyers are pushing a US federal court to reject the SEC's request to extradite himRead more on cointelegraph.com