Revelations from clandestine exchanges on Slack between Terraform Labs’ co-founding visionaries, Do Kwon and Daniel Shin, have brought to light their clandestine contemplation of engineering transactions steeped in duplicity.
Do Kwon, the co-founder par excellence of Terraform Labs, staunchly rebuffs the purported gravity of these exposed Slack communiques, dismissing them as mere smoke and mirrors. The exchange in question was a colloquy marked by intrigue, where they delved into the nefarious realm of maneuvering transactions to beckon investors, with the other co-founder, Daniel Shin, as an active accomplice.
The United States Securities and Exchange Commission (SEC), in a recent court filing harkening back to September 2019, incorporated this surreptitious Slack correspondence between the co-captains of innovation.
The report stemming from this clandestine correspondence implies that Kwon and Shin were deeply entrenched in a cerebral exercise—conjuring stratagems aimed at amplifying investor allure for the Seoul-based financial juggernaut, Chai Corporation.
Chai, born of the visionary minds of Kwon and Shin in the midst of 2019, shared more than just an inception date with Terraform; they inhabited the same physical space and tapped into a shared pool of human resources until their divergence in 2020.
Per the revelations contained within the covert message exchange, Kwon harbored intentions of fabricating transactions, meticulously crafted to don the veneer of authenticity. “I can just create fake transactions that look real,” he mused, as if plotting the grandest of heists. Kwon elucidated that these transactions would orchestrate the melodious tune of fees, gradually fading into obscurity as Chai’s presence expanded.
In a conspiratorial tone, he endeavored to secure Shin’s unwavering silence: “I won’t tell if you won’t,” he whispered in the digital shadows. His assertion further veiled the operation in a shroud of enigma, suggesting that the discerning eye of investors would be impotent in unearthing their surreptitious machinations. “All the power to those that can prove its fake,” he quipped, vowing to marshal every resource to protect the clandestine symphony from the light of day.
However, Kwon stands in vehement opposition to the evidence arrayed against him, contending that it has been grotesquely plucked from the tree of context. His legal battalion posits that Kwon and Shin, in their cryptic discussions, merely broached the subject of staking LUNA tokens with validators, worlds apart from the conjuring of spurious Chai transactions. “In the grand tapestry of this procedural drama, the SEC weaves a mendacious yarn,” they proclaim, alleging that the SEC’s maneuvers are driven by misrepresentations of inconsequential evidence, aimed at tilting the scales of justice.
Simultaneously, Kwon’s legal vanguard relentlessly presses on in their struggle within the hallowed halls of the U.S. federal court, adamantly resisting the SEC’s fervent plea for Kwon’s extradition in the wake of the Terra ecosystem’s cataclysmic collapse. They label this request “an exercise in futility,” for Kwon finds himself incarcerated in the confines of Montenegro, with the specter of release date yet to manifest. This plight is compounded by Kwon’s prior conviction on charges of passport forgery—a chapter in his life that further muddies the waters of his predicament.
