South Korean Prosecutors Reveals Do Kwon Sent Funds to Local Law Firm before TerraUSD’s Fall

South Korean Prosecutors Reveals Do Kwon Sent Funds to Local Law Firm before TerraUSD’s Fall

UTC by Ibukun Ogundare · 3 min read
South Korean Prosecutors Reveals Do Kwon Sent Funds to Local Law Firm before TerraUSD’s Fall
Photo: Shutterstock

After Kwon was arrested, the prosecutors indicated that he had paid the law firm before the collapse.

As the legal battle between Do Kwon and South Korean prosecutors continues, the prosecutors stated that the CEO of Terraform Labs Do Kwon transferred some money to a law firm before TerraUSD and Luna crumbled. There are reports about the crypto entrepreneur sending 9 billion won ($7 million) to local law firm Kim & Chang just before the demise of the tokens he created. Do Kown is the South Korean CEO and co-founder of TerraForm Labs, the parent company of fallen TerraUSD and Luna. Coincidentally, the assets of the same company crashed in May 2022. The unfortunate incident cost the crypto industry billions of dollars, beginning with a nearly $45 billion loss in a week. As a result, Kwon is facing legal charges from citizens from the US, Singapore, and its home country South Korea. As he faces legal and social pressure concerning his involvement in the dramatic event, the CEO was apprehended on March 23, 2023. The arrest occurred in Montenegro while the entrepreneur was trying to travel to Dubai with falsified documents.

Do Kwon Paid Law Firm Before Terra’s Collapse

After Kwon was arrested, the prosecutors indicated that he had paid the law firm before the collapse. They also added that the news “isn’t false.” The timing of the payment to the law firm signifies that Kwon anticipated he could need legal help before things actually fell apart. When queried about the payment from Kwon, the law firm wrote in a text message:

“We are unable to provide specifics on individual cases. We have conducted our legal advisory services as usual and have legitimately received the fee for the services.”

While Kwon remained detained in South Korea, a court recently revealed that he has no property that can be seized in the country. Officials have identified around 91.4 billion in digital assets linked directly to Kwon. The crypto entrepreneur reportedly converted proceeds from Terra Luna to Bitcoin via foreign crypto exchanges. Hence, authorities have ordered popular crypto company Binance to suspend further withdrawals linked to Kwon and his associates. Notably, South Korean officials found about 414.5 billion won ($314.2 million) in illegal assets connected to Kwon and his associates. Meanwhile, Binance has assured that it is cooperating with prosecutors on the said matter.

“We provided Korean LE authorities with the requested assistance. Since we cannot comment on ongoing LE investigations, for any further comment please reach out to the prosecutors.”

Many believe that other revelations about Kwon will spring up in addition to the funds sent to the local firm. The fact that he sent the money before the collapse indicates that he sensed that the downfall was coming. A US grand jury has also charged him with eight counts, including wire fraud, conspiracy, securities fraud, commodities fraud, etc.

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