Do Kwon Sent $7 Million to Law Firm Before Collapse, Prosecutors Claim
South Korean prosecutors have reportedly confirmed that just before the Terra ecosystem's collapse, Do Kwon, CEO of Terraform Labs, transferred 9 billion won ($7 million) to a top South Korean law firm, Kim & Chang.
Prosecutors have flagged this move as deliberate, indicating that Kwon was likely aware of the imminent collapse and anticipated legal problems.
While the prosecutors try to establish Kwon’s ill intent in paying the law firm in advance, they believe the information will be helpful in the ongoing fraud case.
To this end, Kim & Chang’s lawyers traveled to Montenegro to meet Kwon and Terraform’s former CFO, Han Chang-joon.
Kwon was previously arrested at Podgorica airport in Montenegro while attempting to fly to Dubai using fake documents, and both US and South Korean authorities have sought his extradition.
Meanwhile, South Korean prosecutors suspect Kwon of converting illicit funds from Terra LUNA to Bitcoin BTC and have requested Binance to halt all withdrawal requests linked to Kwon.
Prosecutors have reportedly identified 414.5 billion won ($314.2 million) in illicit assets associated with Kwon and his associates, of which around 91.4 billion won ($69 million) is directly linked to Kwon.
A Binance spokesperson has declined to comment on ongoing LE investigations.