SEC court documents reveal Do Kwon discussed “fabricated trading volumes” with Chai founder

Odaily Planet Daily News US SEC court documents show that Do Kwon has "almost" admitted that he had falsified transaction volume. The documents show the content of text messages between Do Kwon and payment app Chai founder Daniel Chin (also co-founded by Terraform). Do Kwon told Chin: "I can create fake transactions that look real... which will incur fees." Chin asked what if "people find out it's fake," to which Do Kwon responded: "If you don't tell it, I won't tell it either." In 2019, Terra announced its partnership with Chai, noting in a blog post that the partnership aimed to rebuild the payments stack on the blockchain to simplify legacy payment systems and provide merchants with discounted transaction fees. The partnership will help the Terra network handle “millions or even billions of transaction volumes.” However, the SEC wrote in the filing that Chai Payments did not use the Terraform blockchain to process and settle payments. Instead, the defendants fraudulently copied Chai payments onto the Terraform blockchain to make them appear to occur on it; in fact, Chai payments were made via traditional means. In a private exchange between Kwon and Daniel Shin in the early stages of Chai and Terraform's partnership, Do Kwon detailed how he planned to use Chai to create fake transactions on the Terraform blockchain so that they would appear real and generate cost. (Decrypt) According to previous news, Do Kwon rejected the US SEC's extradition request and opposed providing testimony to US regulatory agencies.