Do Kwon dismissed the Slack chat logs as irrelevant evidence.

Do Kwon, co-founder of Terraform Labs, disputed the importance of the exposed Slack messages presented as evidence. The discussion includes a discussion with co-founder Daniel Shin on structuring transactions to attract investors.

The United States Securities and Exchange Commission (SEC) included Slack conversations between its co-founders in a recent court filing in September 2019.

According to the report, Kwon and Shin were actively strategizing to increase investor interest in Seoul-based payment provider Chai Corporation.

Chai was founded by Kwon and Shin in mid-2019 and shared offices and staff with Terraform until the two firms split in 2020.

According to the leaked messages, Kwon intended to create fake transactions to make them more attractive to investors:

“I can create fake transactions that look real.”

Kwon also explained that the transactions will generate fees, which can be phased out as Chai grows.

He then tries to make a deal with Shin to keep the plan a secret. “I'm not saying you don't want to,” Kwon said.

He further explained that it will be a challenge to find out the strategies of defrauding investors.

He said he would do everything in his power to prevent the scheme from being exposed, saying that “he has authority over all who can prove the forgery.”

Because I try my best to make it invisible.

But Kwon dismissed the evidence against him as being taken out of context.

His legal team said Kwon and Shin talked about placing LUNA tokens with validators instead of creating fake transactions.

“Finally, the SEC has misrepresented evidence that had nothing to do with the merits (or lack of merits) of the SEC's case in its procedural steps to challenge Mr. Kwon.”

“In other words, the SEC's complaint is based on misrepresentations of irrelevant evidence to support the false claim that Mr. Koon could not be reached,” Koon's attorneys added.

RELATED: Do Kwon Converted Illegal Funds From LUNA To Bitcoin: S. Korea Prosecutors

Meanwhile, Kwon's attorneys are pushing a US federal court to dismiss the SEC's request for relief from Terra Ecosystem's collapse.

His legal team said the request is “impossible” because he is being held in Montenegro with no scheduled release date. This follows Kwon's conviction for passport fraud.

Magazine: Blockchain Investigators: M. Gox's Collapse Begat Chinaliss