• Prosecutors in South Korea have found that Terraform Labs CEO Do Kwon sent $7 million to a law firm prior to the crash of the ecosystem.
• Evidence suggests Kwon was aware of potential legal troubles and had prepared for them.
• A spokesperson from Binance stated they provided Korean LE authorities with requested assistance.
Do Kwon Paid Legal Firm Before Crash
Prosecutors in South Korea have verified that just before the catastrophic breakdown of the Terra ecosystem, Terraform Labs CEO Do Kwon sent 9 billion won ($7 million) to Kim & Chang, a prominent South Korean legal firm. Prosecutors reportedly cited Kwon’s choice to pay millions to the law firm as evidence that he knew the business was about to fall and was preparing for potential legal troubles, as reported by KBS News.
Evidence Strengthens Case Against Do Kwon
Prosecutors think this new evidence will aid their investigation into Kwon’s alleged fraudulent behavior in prepaying the legal firm. In addition, attorneys from Kim & Chang travelled to Montenegro to meet with Kwon and Han Chang-joon, Terraform’s former CFO. Kwon was previously apprehended at the airport in Podgorica, Montenegro, for attempting to travel to Dubai on false identification. Authorities in both the United States and South Korea have requested Kwon’s extradition since his detention. But it depends on what the court decides.
Korean LE Requests Assistance From Binance
On April 7th, it came out that authorities in South Korea believed Kwon had transferred illegal money from Terra LUNA to Bitcoin. Prosecutors asked Binance to freeze Kwon’s account and cancel any withdrawal requests. Prosecutors determined that Kwon, the co-founder of Terraform Labs, and his friends had amassed criminal assets to the tune of 414.5 billion won ($314.2 million), of which around 91.4 billion won ($69 million) is allegedly directly related to Kwon. Binance spokesperson stated: “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.“
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It appears that Do Kwons payments ahead of time are being seen as suspicious by prosecutors due his alleged fraudulent activities leading up too his arrest when trying o travel with false papers too Dubai along with other suspicious activities such as transferring money between two crypto networks which has led Binance too freeze all transactions relating too him until further notice