Terraform Labs co-founder Do Kwon is disputing the importance of leaked Slack messages that were presented as evidence against him. The messages, which date back to September 2019, involved discussions between Kwon and co-founder Daniel Shin about manipulating transactions to attract investors for their company, Chai Corporation. In the messages, Kwon suggested creating fake transactions to make the company appear more appealing to investors, with the intention of gradually phasing out the manipulation as Chai grew. Kwon’s legal team argues that the evidence has been taken out of context and that the discussion was about staking LUNA tokens with validators rather than creating counterfeit transactions.
Despite the evidence presented by the SEC, Kwon denies any wrongdoing. His lawyers claim that the SEC’s motion relies on misrepresentations of irrelevant evidence to support its case against Kwon. They argue that the request to extradite Kwon to the United States is impossible because he is currently detained in Montenegro on passport fraud charges. Kwon’s legal team is urging the US federal court to reject the SEC’s request for extradition.
This latest development follows Kwon’s conviction for passport fraud and the collapse of the Terra ecosystem. Kwon’s lawyers are pushing back against the SEC’s claims, maintaining that the evidence has been misinterpreted and that their client should not be extradited to the US. The outcome of the legal proceedings will determine the fate of Kwon and the charges brought against him by the SEC.