An old chat shows Terra (Luna) co-founders involved in a fraudulent transaction

The US SEC is ready to proceed with its motion against Do Kwon on behalf of a 3-year chat between Kwon & other Terra co-founder.

Terraform Labs is a South Korean blockchain developer firm that developed Terra blockchain. In May of last year, Terra’s native crypto tokens collapsed badly under high volatility. In March of this year, the United States Securities and Exchange Commission (SEC) sued Terraform Labs co-founder Do Kwon for crypto fraud in the US jurisdiction. 

In a recent court filing the US SEC presented a past chat between two Terraform co-founders Do Kwon & Daniel Shin. The chat between the Terra co-founders happened in mid-2019 and the SEC agency took this chat as very important evidence to take action against Kwon over crypto fraud. 

The attached chat conversation showed that Kwon said that he could create a huge amount of fake transactions on the Terra blockchain and further the generated gas fee will gradually be phased out as Chai Corporation grows.

Kwon also said that no one will come to know and he will keep it always hidden & realistic & he will never tell anyone about this thing if he (shin) wants. 

Chai Corporation is a Seoul-based payments provider firm, founded by Shin. The whole conversation between Shin & Kwon took place just before Shin left the Terra project. All the conversations showed that both of these two people misused their power to manipulate the financial transactions, to attract Investors for the Chai firm.

Kwon responded to this SEC’s evidence & called it a baseless fact and his representative lawyers said that the whole discussion was a part of Luna coin staking, not creating counterfeit Chai transactions.

His lawyers alleged that the obtained evidence by the SEC body against Kwon in this case is totally out of the whole context of the case. In short, Kwon’s lawyers dismissed this chat as garbage for the case. 

Just a day ago, we reported that Kwon’s lawyers responded to the SEC’s extradition request and said that it would be impossible for Kwon to appear. The lawyers said that Kwon is in Montenegro on bail, as he was arrested early this year at the airdrop with forged documents. 

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