SEC files new documents about Terraform Labs collapse

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SEC files new documents about Terraform Labs collapse

More claims about the collapse of the Terra ecosystem, particularly against its founder Do Kwon, have surfaced online, as the SEC released a new set of documents, highlighting that the crypto entrepreneur admitted to faking trading volumes.

In its pursuit of protecting investors and making people responsible for the catastrophic collapse of the Terraform Labs ecosystem that wiped billions in investments, the SEC filed several documents Monday in the court, and one of the documents contains the alleged conversation between Kwon and Terraform Labs co-founder Daniel Shin.

While the co-founders of Terraform Labs falsified data, the relationship between Chai and TFL ended in 2020.

Despite this, the controversial relationship has been the subject of numerous speculations, particularly since many alleged that it continued even after Shin left, with the SEC alleging that some significant Chai transactions were carried out on Terra's blockchain.

Kwon's legal team immediately asked the financial regulator to remove Kwon, who lives in Montenegro, for possession of fake travel documents.

Kwon's lawyers also said the crypto executive does not directly oppose a deposition, but insisted that it should take place in Montenegro, where the South Korean crypto mogul is currently out on bail.