Terraform Labs Pte co-founder Do Kwon sent 9 billion won ($7 million) to Kim & Chang, a top South Korean law firm, just before the collapse of Terra / Luna, according to South Korean prosecutors. This move is believed to suggest that Kwon was aware of the impending collapse and expected legal problems. Prosecutors are now investigating this transaction as part of their fraud case against Kwon.
Kwon has been charged by US prosecutors with orchestrating a cryptocurrency fraud that wiped out at least $40 billion in market value. He faces similar charges in South Korea, and both countries are seeking his extradition from Montenegro, where he is currently jailed. Kwon and Terraform’s former chief financial officer, Han Chang-joon, were arrested on March 23 in Montenegro as they tried to fly to Dubai using falsified travel documents.
The largest law firm in South Korea, Kim & Chang, has sent lawyers to Montenegro to meet with Kwon and Han, without identifying the people familiar with the matter. The purpose of this meeting is unclear, but it is likely related to Kwon’s legal situation.
Singaporean law enforcement is also investigating the source of funds sent to Kim & Chang, as KBS News reported. If Kwon liquidated illicit cryptocurrency assets to pay lawyers, embezzlement charges can be brought against him. Authorities from both Singapore and South Korea are attempting to seize the funds.
The situation surrounding Do Kwon and Terraform Labs is complex and continues to develop. The judge in Montenegro will ultimately decide whether Kwon will be extradited to the US or South Korea, but Kwon may first have to serve time in Montenegro if he is convicted of traveling on fake documents. The investigation into Kwon’s alleged fraud and the collapse of Terra and Luna is ongoing, and more details may emerge as the case progresses.
Read more:
- Do Kwon Faces Over 100-Year Sentence In US, 40-Year Sentence In Korea
- Do Kwon Faces Transfer To Cramped Detention Area Only 8 Square Meters About 10 People With No Beds
- Seoul Prosecutors Ask Binance To Freeze Do Kwon’s Cryptocurrency