Terraform Labs CEO Do Kwon allegedly sent $7 million to a law firm before the Terra ecosystem collapse, raising suspicions.
South Korean authorities have recently disclosed that Do Kwon, the CEO of Terraform Labs, made a significant payment of 9 billion won (around $7 million) to the prestigious South Korean law firm Kim & Chang just before the catastrophic failure of the Terra ecosystem. Reports from KBS News suggest that Kwon’s sizable transfer to the law firm was a strategic action, allegedly demonstrating his prior knowledge of the impending collapse and the anticipated legal complications that would ensue.
As part of their ongoing fraud investigation, prosecutors aim to demonstrate Kwon’s malicious intent by associating the advance payment to the law firm with the current case. They are confident that this newly discovered information could play a vital role in strengthening their argument. In the meantime, lawyers from Kim & Chang made their way to Montenegro to hold discussions with Do Kwon and the former Chief Financial Officer of Terraform, Han Chang-joon.
Previously, Kwon was detained at the Podgorica airport in Montenegro as he tried to embark on a flight to Dubai using counterfeit documents. Authorities from both South Korea and the United States are now working towards Kwon’s extradition, although the court’s decision is still pending.
Suspected Illegal Assets Worth $314 Million Uncovered
On April 7, South Korean prosecutors revealed their suspicion that Kwon had laundered unauthorized funds originating from Terra. Consequently, they asked Binance, a leading cryptocurrency exchange platform, to suspend all withdrawal requests linked to Kwon. In their investigation, prosecutors have pinpointed a total of 414.5 billion won ($314.2 million) in illegal assets connected to Kwon and his accomplices, with around 91.4 billion won ($69 million) reportedly having a direct association with Kwon.
In response to the situation, a representative from Binance confirmed their collaboration with Korean law enforcement by providing the necessary assistance. However, they refrained from giving further comments on the ongoing inquiry and advised reaching out to the prosecutors for more information.