Report Reveals Do Kwon’s Terraform Sent $7 Million to Law Firm Before Collapse

Report Reveals Do Kwon’s Terraform Sent $7 Million to Law Firm Before Collapse – According to a report by national broadcaster KBS, prosecutors in South Korea who are investigating fraud allegations against Do Kwon, the co-founder and CEO of Terraform Labs, have disclosed that the company has paid approximately $7 million, which amounts to 9 billion won, to Kim & Chang, the top law firm in the country.

By monitoring financial transactions from its Singaporean headquarters, it was discovered that the funds were sent in multiple transactions that began just before the decline of Terraform Labs’ digital currencies, terrausd stablecoin, and luna cryptocurrency in May of the previous year. Seoul-based investigators are collaborating with law enforcement agencies in Singapore to verify the origin of the payments. 

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Should it be determined that Terraform Labs sold its digital coins, the company’s management may face charges of embezzlement. As per the report, it appears that the CEO of Terraform Labs was aware beforehand of the potential collapse of the cryptocurrency ecosystem and may have taken specific legal actions to counter anticipated legal risks, including the ongoing investigation.

According to KBS, the entire sum was transferred to Kim & Chang over the course of several months. South Korean prosecutors are of the opinion that if the funds originated from illicit activities, they can be frozen and confiscated. Roughly 200,000 individuals are believed to have purchased Terraform Labs’ cryptocurrencies and incurred significant losses when their value plummeted, resulting in the obliteration of billions of dollars in market worth.

In March, Do Kwon (Kwon Do-Hyung), along with the Chief Financial Officer of Terraform Labs, Han Chang-joon, was arrested by Montenegrin authorities while attempting to depart for Dubai. He will face trial in Montenegro for using forged documents before being considered for extradition to either South Korea or the United States, where he is accused of orchestrating the cryptocurrency scam.


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