According to South Korean prosecutors, it has been confirmed that Do Kwon, the CEO of Terraform Labs, sent 9 billion won (equivalent to $7 billion) to Kim & Chang, a prominent South Korean law firm, just before the Terra ecosystem’s dramatic downfall.
KBS News reported that South Korean prosecutors flagged Do Kwon’s transfer of millions to Kim & Chang as a deliberate move. This decision allegedly indicates that Kwon was aware of the impending collapse of the Terra ecosystem and anticipated the expected legal problems. The prosecutors’ statement suggests that Kwon may have been trying to protect himself or his company from the potential legal consequences of the collapse by securing legal representation in advance.
South Korean prosecutors believe that Kwon’s decision to prepay Kim & Chang could indicate ill intent and may be helpful in the ongoing fraud case. Furthermore, it has been reported that lawyers from Kim & Chang visited Montenegro to meet with Kwon and Han Chang-joon, Terraform’s former chief financial officer.
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Do Kwon was previously arrested at the Podgorica airport in Montenegro for attempting to board a flight to Dubai with fake documents. After his arrest, US and South Korean authorities sought Kwon’s extradition to their respective countries. However, it appears that the court has not yet decided on whether to grant the extradition request.
South Korean Prosecutors Request Assistance From Binance
As of April 7, South Korean prosecutors have alleged that Do Kwon may have converted illicit funds from Terra LUNA. In response, the prosecutors requested that Binance halt all withdrawal requests linked to Kwon.
South Korean prosecutors have identified 414.5 billion won (approximately $314.2 million) in illicit assets linked to Do Kwon and his associates at Terraform Labs. Approximately 91.4 billion won (around $69 million) is directly linked to Kwon. As a result of these allegations, the prosecutors have requested assistance from Binance, a cryptocurrency exchange, to halt all withdrawal requests linked to Kwon.
In response to the request, a spokesperson from Binance stated that they had assisted the Korean authorities but could not comment further on ongoing investigations. This development suggests that Kwon and Terraform Labs may face significant legal and financial repercussions due to the alleged illicit activities.