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

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

Prosecutors investigating failed blockchain firm Terraform Labs have found out that its Singapore office sent millions of U.S. dollars to lawyers just before the crash of its cryptocurrencies. According to Korean media, the transfers suggest that co-founder Do Kwon was aware of the imminent collapse. Terraform Labs Transferred Large Amounts of Money to South Korean Law Firm Prior to Crash

South Korean prosecutors working on the fraud case against Terraform Labs co-founder and CEO Do Kwon have revealed that the company has paid a total of 9 billion won (nearly $7 million) to Kim & Chang, the country’s leading law firm, national broadcaster KBS reported.

Tracking financial flows from its Singapore headquarters, they were able to establish that the funds were sent in several transactions which started right before the collapse of Terraform’s digital currencies, stablecoin terrausd and cryptocurrency luna, in May of last year.

Investigators from Seoul are cooperating with law enforcement authorities in Singapore to confirm the source of the payments. If it turns out that the blockchain firm has cashed out digital coins, charges of embezzlement may be brought against its management.

The report suggests that Terraform’s chief executive was aware in advance of the possibility of the crypto ecosystem collapsing and likely prepared certain legal moves in response to expected judicial risks such as the current investigation.

The full amount quoted by the KBS was allegedly transferred to Kim & Chang over a period of a few months. The South Korean prosecutors believe that if the funds stem from criminal proceeds they can be frozen and eventually seized.

It has been estimated that around 200,000 people bought Terraform’s cryptocurrencies and suffered heavy losses when their collapse erased billions of dollars in market value.

Do Kwon (Kwon Do-Hyung) was arrested by authorities in Montenegro in March, together with the company’s Chief Financial Officer Han Chang-joon, while trying to leave for Dubai. He is going to stand trial in the Balkan nation for traveling on false documents, before Podgorica considers his extradition to either South Korea or the United States, where he is charged with masterminding the crypto fraud. Tags in this story ceo, Charges, co-founder, collapse, Crash, Crypto, Cryptocurrencies, Cryptocurrency, do kwon, embezzlement, Fraud, Investigation, Kim & Chang, law firm, Lawyers, LUNA, money, Montenegro, Payments, Prosecutor"s, Singapore, South Korea, south korean, Stablecoin, Terraform, terraform labs, TerraUSD, transfers

Do you think South Korean authorities will be able to seize the money transferred by Terraform to the law firm? Tell us in the comments section below. Lubomir Tassev

Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’s quote: “Being a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration. Silk Road Hacker Sentenced to a Year in Prison for Wire Fraud NEWS | 16 hours ago Economist Paul Krugman Criticizes Florida Gov. Ron DeSantis" Opposition to Central Bank Digital Currency NEWS | 1 day ago

Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleReport: Nigeria-China Currency Swap Agreement Fails to Ease Pressure on the Naira Next articleShapella Upgrade Hits, Economist Predicts Biggest Crash ‘in Your Lifetime,’ US Bank Lending Plummets — Week in Review Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItBitcoin ATM Operator Indicted in New York Allegedly Running Illegal Business Attracting Criminals

A bitcoin ATM operator has been indicted in New York for running an illegal business "marketed towards individuals engaged in criminal activity." The district attorney in charge described: "Robert Taylor allegedly went to great lengths to keep his bitcoin kiosk ... read more.UAE Airliner Emirates to Launch NFTs and Experiences in the Metaverse Goldman Predicts US Recession Odds at 35% in 2 Years, John Mauldin Wouldn"t Be Surprised if Stocks Fell 40% Fed"s Bullard Wants to Raise Bank Rate to 3.5% by Year"s End, Hints at 75 Basis Point Rate Hike Ethereum Foundation"s Financial Report Discloses It Holds $1.6 Billion in Assets, 80.5% Held in Ether