Co-founder Do Kwon Contests Slack Messages in SEC Case
Do Kwon, co-founder of Terraform Labs, has contested the significance of exposed Slack messages offered as evidence. Daniel Shin, the co-founder, and I discussed manipulating transactions to attract investors.
Slack message report between Do Kwon and Daniel Shin. Source: Docdroid
The message report indicates that Kwon and Shin were actively considering strategies to increase investor interest in Chai Corporation, a Seoul-based payments provider.
“I can just create fake transactions that look real.”
Kwon and Shin founded Chai in the middle of 2019; the two businesses co-shared space and staff up until 2020, when they split.
According to the leaked message exchange, Kwon intended to create fake transactions to make them more attractive to investors. Kwon further elaborates that the transactions will produce fees and can be gradually phased out as Chai grows.
Slack conversation between Do Kwon and Daniel Shin on 5/9/2019. Source: Docdroid
He then attempts to establish a confidentiality agreement with Shin. “I won’t tell if you won’t,” asserted Kwon. He added that it will be difficult for investors to uncover the manipulation techniques.
“All power to those who can prove it’s a hoax,” he says, adding that he will make every effort to prevent the scheme’s exposure. Kwon, however, disputes the evidence against him, claiming that it was taken out of context.