Reports Reveal Do Kwon Sent $7 Million to Lawyers Before Collapse

Investigators have traced various transactions from Terraform Labs’ Singapore headquarters, showing that the CEO was aware of the impending crypto ecosystem collapse, yet did not take legal action.

Investigations into the collapse of blockchain enterprise Terraform Labs have revealed that the company’s Singapore office transferred a substantial sum to a renowned law firm right before the cryptocurrencies were crushed. As reported by Korean media, the timing of the transactions suggests that co-founder Do Kwon had foreknowledge of the impending collapse.

It has been confirmed by South Korean officials that Terraform Labs’ CEO, Do Kwon, sent 9 billion won (approximately $7 million) to the prestigious South Korean law firm Kim & Chang, shortly before the dramatic unraveling of the Terra ecosystem.

Investigators looking into the demise of blockchain company Terraform Labs were able to track financial flows from its Singapore headquarters, discovering that the funds were sent in a series of transactions that began just before the demise of Terraform’s digital currencies, stablecoin terrausd and cryptocurrency Luna, in May of last year.

Authorities Collaborating with Law Enforcement

South Korean officials are now collaborating with Singaporean law enforcement to determine the source of these payments and whether the blockchain firm liquidated digital coins, which could result in embezzlement charges against its management.

The findings have spurred an additional investigation into Terraform Labs’ CEO’s conduct, as investigators try to determine whether the company’s top brass was aware of the impending crypto ecosystem collapse.

Korean media reports have drawn attention to the timing of the transactions, which coincided with the downfall of Terra’s digital currencies. The ongoing investigation is attempting to determine the degree of the CEO’s involvement and knowledge, which might have serious legal ramifications for the corporation and its management.

Why Was Do Kwon Arrested?

Following the crash of both TerraUSD and Luna coins, investors filed charges against Kwon in May, accusing him of orchestrating a Ponzi scheme that led to the loss of billions of won.

Since then, the entrepreneur had been investigated for possible fraud and tax evasion. After the $40 billion ecosystem imploded last year, sending shockwaves throughout the crypto markets, Kwon became the focus of various probes and even appeared on Interpol’s red notice. In the end, Do Kwon was arrested.

Previous Article

TrueUSD (TUSD) Volume Approaches Tether (USDT) Volume

Next Article

SOL Technical Analysis 16.04.2023

Related Posts
Read More

XRP Decision “Is Law”, Says States Lawyer

Crypto lawyer John E. Deaton offers insights into the potential outcomes of a possible SEC appeal against the Ripple ruling. Deaton emphasizes that the existing Torres' decision remains law, at least for the time being. Even if the appeal proceeds, the final verdict could still be years away.