News - Terra founder admits fraud in conversation on Slack

By Mike Hesp

Terra founder admits fraud in conversation on Slack

Incriminating Do Kwon's chat history reveals that the Terra founder was involved in fraudulent activities as early as 2019.

From court documents from the U.S. Securities and Exchange Commission reveals that Terra founder Do Kwon admitted to falsifying transactions in front of his colleagues. These are related to a 2019 collaboration with payment service provider "Chai Corporation."

According to the statement, Kwon had told his co-founder Daniel Shin in a Slack message, "I can easily create fake transactions that look real."

Moreover, Kwon was sure he could make the fake transactions "invisible" and ended the conversation with: "I won't say anything if you don't say anything."

The SEC, meanwhile, accuses Kwon and Shin of falsifying payments from the Chai network and replicating them on the Terra blockchain. This was to give the impression that the Terra network processed the payments itself.

Because of the fraud, the SEC is also demanding the rendition of Kwon, which his lawyers consider "impossible." The Terra founder is currently in Montenegro in detention For passport forgery.

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