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- In a damning revelation, Terra founder Do Kwon admitted to fraudulent transactions dating back to a 2019 partnership with payment service provider Chai Corporation.
- Amid SEC’s escalating scrutiny, Kwon currently faces detention in Montenegro, while fighting a demanding extradition to the US.
A wave of contention sweeps across the blockchain community as Terra founder Do Kwon finds himself entangled in a web of deceit. Revealed Slack messages exhibit Kwon’s admission to forging transactions related to a 2019 partnership with Chai Corporation.
The Origin of Deception
As the correspondence unfolds, it’s become apparent that Kwon, in a message to co-founder Daniel Shin, brazenly acknowledged his capability to fabricate transactions that appear genuine. His exact words,
“I can simply create fake transactions that look real,”
uncloaks a sinister plot to mislead stakeholders.
His assurance didn’t just end at the creation of these fictitious transactions. He further claimed the ability to render these transactions
“invisible,”
effectively covering any trace of fraud. The conversation culminated with a pact of silence,
“I say nothing if you say nothing.”
The US Securities and Exchange Commission (SEC) didn’t take these revelations lightly. They accused Kwon and Shin of mirroring fabricated transactions from the Chai network onto the Terra Blockchain. This malfeasance was orchestrated to mislead, making it seem as if the Terra network was executing these transactions autonomously.
Legal Whirlpool
As the storm clouds gather, the SEC presses for Kwon’s extradition to the United States, a demand that Kwon’s legal team deems
“impossible.”
Presently, Kwon finds himself held in Montenegro due to passport forgery charges.
The unveiled deceit doesn’t just spell legal trouble for Kwon, but also casts a long shadow over the integrity and trustworthiness of the blockchain ventures he was associated with. It’s a stark reminder to the crypto-community about the imperative need for transparency and ethical conduct in a realm where trust is the bedrock of all interactions.
The unfolding scenario embroils not only the individuals involved but sends ripples across the broader crypto space, underscoring the fragile threshold that separates legitimacy from fraudulence in the ever-evolving blockchain ecosystem.
