SEC whistleblower: Chai payment application aims to promote the Terra ecosystem but does not utilize cryptocurrency.

According to BlockBeats news on December 31st, in a new summary judgment by Judge Jed Rakoff of the Southern District Court of New York, he ruled that Do Kwon and his co-founded company Terraform Labs sold four cryptocurrencies that were deemed unregistered securities: TerraUSD (UST), LUNA, wLUNA, and Mirror Protocol (MIR). Jed Rakoff also detailed the evidence provided by the SEC, pointing out that the Chai payment platform, which was often used by Do Kwon as a practical example of the Terra blockchain, was not actually running on the Terra blockchain from the beginning. Instead, it was claimed that payments were settled through traditional methods and then recorded on the Terra blockchain as "mirrors" controlled by Do Kwon's servers. The document also includes a statement from a whistleblower at Chai, the Chief Product Officer, who was informed by a former Terraform employee that "no encryption was performed inside Chai". The whistleblower also claimed that they questioned Do Kwon in September 2021, and at that time, Do Kwon did not deny the allegations but instead said that he did not care about Chai.