Terraform Labs founder Do Kwon sent millions to a local law firm in South Korea just before the Terra ecosystem exploded.
Kwon sent 9 billion won ($7 million) to lawyers at Kim & Chang, South Korea’s biggest law firm, just before the firm’s algorithmic stablecoin Terra and its sister cryptocurrency Luna collapsed, according to South Korean media. kbs news Reported last week.
In Monday’s text message, the prosecutor’s office in Seoul Confirmed report, claiming that the revelation “is not false.”
The KBS report speculated that Kwon’s move to send money to lawyers showed that he knew he would face legal problems following the collapse of his crypto empire.
The report said that lawyers for Kim and Chang had flown to Montenegro a few days earlier to meet with Kwon and Terraform’s former chief financial officer.
Asked about the KBS News report, Kim and Chang reportedly said in a comment, “We are unable to provide details on individual cases.”
“We have conducted our legal advisory services as usual and have legitimately received fees for the services.”
As reported, the Interior Minister of Montenegro, Filip Adzic, announced Last month via Twitter that a man suspected to be Do Kwon has been arrested at Podgorica airport.
Subsequently, South Korean police said that the suspect arrested in Montenegro was identified as Kwan after his fingerprints matched information held by the country’s National Police Agency (KNPA).
Do Kwon is the co-founder and CEO of Singapore-based Terraform Labs, the company behind the crashed stablecoin TerraUSD and the cryptocurrency Luna.
TerraUSD used a mix of algorithms and merchant incentives tied to a sister token, Luna, to maintain its $1 peg. However, the stablecoin Lost Its dollar peg in May last year after a wave of selloff in the crypto market.
US prosecutors estimate that at least $40 billion of investors were lost in the crash of Terra Ecosystem.
Both the US and South Korea requested Kwon’s extradition
After Kwon’s arrest, the Montenegrin authorities Confirmed That both the US and South Korea have requested the extradition of the infamous crypto boss.
Officials said that Do Kwon’s fate rests in the hands of a judge.
Montenegro’s Justice Minister, Marko Kovac, said “the seriousness of the crimes, the location of the crimes committed, the sequence of the requests, as well as the citizenship will be considered”.
Earlier this month, Do Kwon was Was accused in New York with eight counts of fraud, including two counts each of securities fraud, wire fraud, commodity fraud and conspiracy.
US prosecutors allege that Kwon made a series of false and misleading statements during a TV interview regarding the extent to which the Terra blockchain was adopted by users.
Similarly, in mid-September, a court in Seoul issued an arrest warrant for Kwon, following a criminal investigation into the collapse of the Terra ecosystem. South Korea has also accused Kwon of violating the Capital Markets Act and committing fraud.
Meanwhile, prosecutors in Montenegro have said they will press charges against Kwon and his aide for falsifying official documents, which could result in a maximum prison sentence of six months.