TechFlow reports, according to The Wall Street Journal, that Douglas Henkin, lawyer for Terra founder Do Kwon, stated during a hearing at Manhattan federal court that an anonymous whistleblower assisted the U.S. Securities and Exchange Commission (SEC) in bringing fraud charges against Kwon, with one of the whistleblowers coming from market-making giant Jump Trading Group.
Henkin said the "Jump Trading whistleblower" who provided evidence to the SEC admitted during testimony that he had no direct, firsthand knowledge of transactions in 2021.
Mark Califano, another attorney representing Do Kwon, said the SEC relied on a different whistleblower for another major part of the case involving the South Korean payment app Chai. The SEC alleges that Do Kwon deceived investors by publicly claiming Chai used the Terra blockchain to settle payments, while in reality it used traditional payment technology.
Califano said this whistleblower secretly recorded conversations with a Chai engineer discussing how the app worked. Califano described the whistleblower as "highly biased" and noted he had "been caught lying multiple times."
Earlier, the SEC accused Do Kwon in prior litigation of misleading investors about the stability of his stablecoin TerraUSD.
