Court documents from the SEC show a text exchange where disgraced crypto mogul Do Kwon admitted to planning to generate fake transactions on the Terra blockchain to boost volume and fees.
Do Kwon Admits Terra Faked Trading Volume
Court documents from the SEC show a text exchange where disgraced crypto mogul Do Kwon admitted to planning to generate fake transactions on the Terra blockchain to boost volume and fees.
In the messages with payments platform Chai co-founder Daniel Shin from early in their partnership, Kwon said he could "create fake transactions that look real" which will help to bring in fees. When Shin asked whether people could tell it was forged, Kwon said that he "won't tell if you won't."
According to the SEC, the partnership was not replacing Chai's payment infrastructure as promoted, but rather copying transactions onto Terra's blockchain to make them appear to be occurring there.
This sheds new light on the relationship between Kwon, Terra and Chai after Terra's collapse in May last year. Do Kwon’s legal team recently responded to the SEC’s request to have Kwon extradited to the U.S. for questioning “impossible,” as the SEC seeks to pursue fraud charges against Kwon over his role in the $40 billion crypto crash.
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