Terraform Labs Co-founder Challenges Slack Messages as Evidence in SEC Case
Do Kwon, co-founder of Terraform Labs, has disputed the significance of Slack messages presented as evidence in a recent court filing by the United States Securities and Exchange Commission (SEC). The messages involve discussions between Kwon and his co-founder Daniel Shin about manipulating transactions to attract investors. However, Kwon’s legal team argues that the evidence is taken out of context.
The Allegations
The SEC included a conversation from September 2019 between Kwon and Shin in their filing. In response, Kwon’s lawyers state that the discussion was about staking LUNA tokens with validators, not creating counterfeit Chai transactions.
“Finally, the SEC misstates evidence in its gratuitous effort to prejudice Mr. Kwon in a procedural motion having nothing to do with the merits (or lack of merit) of the SEC’s case.”
Kwon’s lawyers further criticize the SEC’s motion, claiming it relies on misrepresentations of irrelevant evidence to support its baseless claim that they have been unable to obtain discovery from Kwon.
Hot Take: Do Kwon Challenges SEC’s Evidence
Do Kwon, co-founder of Terraform Labs, is disputing the significance of Slack messages presented as evidence by the SEC. His legal team argues that the evidence has been taken out of context and misrepresents the discussions he had with his co-founder Daniel Shin. According to Kwon’s lawyers, the conversations were about staking LUNA tokens with validators, not manipulating transactions. They accuse the SEC of using irrelevant evidence and making baseless claims to prejudice Mr. Kwon. This dispute highlights the ongoing legal battle between Terraform Labs and the SEC over alleged misconduct related to attracting investors.
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