After Kwon was arrested, prosecutors indicated that he had paid off the law firm prior to the collapse.
As the legal battle between the two Kwons and South Korean prosecutors continues, prosecutors said TerraForm Labs CEO Doo Kwon transferred some of the money to a law firm before TerraUSD and Luna were busted. There are reports that the crypto entrepreneur sent 9 billion won ($7 million) to local law firm Kim & Chang just before the token he created was capped. Du Kon is the South Korean CEO and co-founder of TerraForm Labs, the parent company of the defunct TerraUSD and Luna. Coincidentally, the same company’s asset crashed in May 2022. The unfortunate incident caused billions of dollars in losses for the crypto industry, starting with a loss of around $45 billion in one week. As a result, Kwon is facing legal charges from citizens of the US, Singapore and his home country of South Korea. As he was facing legal and social pressure regarding his involvement in the dramatic incident, the CEO was arrested on March 23, 2023. The arrest took place in Montenegro, when the entrepreneur was trying to travel to Dubai with fake documents.
Do Kwon paid off law firm before Terra’s collapse
After Kwon was arrested, prosecutors indicated that he had paid off the law firm prior to the collapse. He also said that the news “is not false.” The timing of the payment to the law firm indicates that Kwon anticipated that he might need legal assistance before things really fell into place. When asked about payment to law firm Kwon wrote In text message:
“We are unable to provide specifics on individual matters. We have conducted our legal advisory services as usual and have legitimately received fees for the services.”
While Kwon was recently detained in a court in South Korea revealed That he does not have any property which can be confiscated in the country. Authorities have identified approximately $91.4 billion in digital assets directly linked to quone. The crypto entrepreneur allegedly converted the proceeds from Terra Luna to bitcoin through foreign crypto exchanges. Therefore, the authorities have ordered the popular crypto company binance to suspend further evacuations involving Kwon and his associates. Specifically, South Korean authorities seized approximately 414.5 billion won ($314.2 million) in illegal assets linked to Kwon and his associates. Meanwhile, Binance has assured that it is cooperating with the prosecutors on the said case.
“We provided the requested assistance to Korean LE officials. As we cannot comment on ongoing LE investigations, any further comments please contact prosecutors.”
Many believe other revelations will emerge about Kwon in addition to the money sent to the local firm. The fact that he sent the money before the collapse shows that he sensed that the collapse was coming. A US Grand Jury has indicted him on eight counts including wire fraud, conspiracy, securities fraud, commodities fraud etc.
Ibukun is a crypto/finance writer interested in delivering relevant information using non-complicated words to reach all types of audiences. Apart from writing, she enjoys watching movies, cooking and exploring restaurants in the city of Lagos where she lives.
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