Recently, leaked Slack conversations reflecting the discussions between the co-founders of Terraform Labs’, Do Kwon, and Daniel Shin have come to light. These conversations seem to indicate that they were considering potential dubious tactics to attract investors. However, Terraform Labs’ co-founder Do Kwon is questioning the significance of these revealed Slack messages, offering a different perspective on their content.

The United States Securities and Exchange Commission (SEC) included a new court file containing these Slack chats, which date back to a period up to September 2019. According to the message report, Kwon and Shin, were actively contemplating tactics aimed at increasing investor interest for Chai Corporation, a Seoul-based payment provider. Kwon and Shin founded The Chai Corporation in mid-2019, and the two companies shared offices and staff until they parted ways in 2020.

In a leaked message, it appears that Kwon is discussing a strategy involving the creation of artificial transactions to boost Chai’s appeal to potential investors. In the conversation, Kwon says, “I can create simulated transactions that look very similar to real transactions.”

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Do Kwon continued explaining that these transactions would generate additional fees, which Chai could gradually remove as it expands and develops.

Kwon also appeared to propose a mutual agreement to keep this plan highly confidential with Shin, saying “I won’t disclose if you don’t.” He emphasized that it would be a tough fight for investors to detect these manipulation tactics.

Later parts of the conversation show Kwon saying, “Those who can prove this is a fabrication deserve all the praise,” expressing his determination to make it extremely difficult for the plan to be revealed: “I will spare no effort to ensure it is almost impossible to reveal.”

Despite the evidence he encountered, Do Kwon vehemently denies any allegations, claiming that the context of the evidence presented is misleading.

Kwon’s legal team argues that the communication between Kwon and Shin primarily focused on the possibility of profiting by cooperating with validators of LUNA tokens, and that the issue of creating fake Chai transactions was not the main agenda item. They state that “The SEC, during a procedural motion unrelated to a court request brought against Mr. Kwon, tried to present the evidence in an effort to weaken the basis of the SEC’s case.”

In addition, Kwon’s legal representatives express concerns about his surrender to the US regarding the collapse of the Terra ecosystem. They argue that this request is “impossible,” stating that Kwon is currently being detained in Montenegro, and that his release date has not yet been determined. These developments point to an ongoing and complex legal dispute and highlight the need for more research to determine the true nature of the allegations and evidence.

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