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

Prosecutors scrutinizing failed blockchain firm Terraform Labs have found out that its Singapore office sent millions of U.S. dollars to barristers just before the crash of its cryptocurrencies. According to Korean media, the transfers suggest that co-founder Do Kwon was enlightened of the imminent collapse.

Terraform Labs Transferred Large Amounts of Money to South Korean Law Firm Prior to Blast

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

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

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

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

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

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

Do Kwon (Kwon Do-Hyung) was arrested by controls in Montenegro in March, together with the company’s Chief Financial Officer Han Chang-joon, while trying to leave for Dubai. He is effective to stand trial in the Balkan nation for traveling on false documents, before Podgorica considers his extradition to either South Korea or the Communal States, where he is charged with masterminding the crypto fraud.

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

Lubomir Tassev

Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’s extract: “Being a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other horses mouths of inspiration.