ChainCatcher news, according to Fortune magazine, analysts from blockchain companies Chaos Labs and Inca Digital have found rampant wash trading on Polymarket. They discovered signs of fake trading activity on Polymarket, where buying and selling often occurs simultaneously and repeatedly to create the illusion of trading volume and activity. Chaos Labs found that fake trades account for about one-third of the trading volume in the U.S. presidential election market on Polymarket, while Inca Digital found that a significant portion of the market's trading volume may be attributed to potential fake trades.Chaos Labs and Inca Digital found discrepancies between the reported presidential election prediction trading volume on the Polymarket website and on-chain data. Inca stated that the actual trading volume for the presidential election prediction market is about $1.75 billion, while Polymarket reported a figure of $2.7 billion. Chaos Labs attributed this to Polymarket conflating trading shares with dollars.

ChainCatcher news, according to Yonhap News Agency, there is evidence that Do Kwon, the founder of Terraform Labs, and Daniel Shin, the CEO of Chai, intended to deceive investors since the establishment of Terraform Labs.Records of conversations between Kwon and Shin show that Kwon told Shin, "I can create fake transactions that look real. Once we grow bigger, you can reduce (the fake transactions), and I won't be able to identify them."Shin responded, "Let's experiment on a small scale first and see how it goes."These conversation records have been submitted to the court as evidence by the country's prosecutors.

According to Chain Catcher news and reported by JTBC, the South Korean prosecution has arrested an employee with the surname Yu from Terraform, who is a key assistant to Do Kwon and is accused of engaging in false trading and price manipulation.Chain Catcher previously reported that the South Korean prosecution issued arrest warrants for Terra founder Do Kwon and four others, and requested the Ministry of Foreign Affairs to revoke the passports of Do Kwon and others. Interpol has issued a red notice for Do Kwon. (JTBC)