đ Former Terraform Labs CEO Admits to Faking Transaction Volume In recent court materials submitted by the U.S. Securities and Exchange Commission (SEC), former Terraform Labs CEO Kwon Do-hyung allegedly admitted to faking transaction volume on the blockchain. In a messenger conversation with Terraform Labs co-founder and former Chai Corporation CEO Shin Hyun-seong, Kwon Do-hyung reportedly described the fake transactions as "a fake that looks real" and suggested that creating such transactions might incur a fee. The SEC points to this evidence as an admission of direct involvement in transaction volume manipulation.
In the conversation, when Shin Hyun-seong asked about the risk of people discovering the fake transactions, Kwon Do-hyung allegedly replied, "It's a secret only you and I know." Terra and Chai had formed partnerships, but Terra allegedly never replaced Chai's payment system 'on-chain,' instead copying traditional financial payment details to deceive users.
The SEC has also reportedly requested Montenegrin authorities, who are detaining Kwon Do-hyung, to conduct a remote testimony session. This process allows the witness to answer questions from outside the court when unable to testify in person.
This development could have significant implications for the ongoing investigation into Terraform Labs and its alleged transaction volume manipulation. đâïž #TerraformLabs #SEC #TransactionVolumeManipulation
