SEC documents reveal how Do Kwon handled Terra ecosystem collapse

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SEC documents reveal how Do Kwon handled Terra ecosystem collapse

The allegations surrounding the collapse of the Terra ecosystem, particularly against its founder Do Kwon, have surfaced online as the U.S. Securities and Exchange Commission revealed a new set of documents, indicating that the cryptocurrency entrepreneur admitted to faking trading volumes.

In its pursuit of protecting investors and making people allegedly responsible for the catastrophic collapse of the Terra ecosystem, the SEC filed several documents in the court, including the alleged conversation between Kwon and Terraform Labs co-founder Daniel Shin.

While the extent to which the co-founders of Terraform Labs falsified data in practice is still uncertain, the relationship between Chai and TFL ended in 2020.

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

Kwon's legal team immediately filed a motion seeking the financial regulator's request to depose him, who is currently in Montenegro for possession of fake travel documents.

Kwon's lawyers also told the court that 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.