S. Korea indicates Do Kwon Retained law firm before Terra collapse

The payment made by Do Kwon to a South Korean law firm suggests that the fallen crypto entrepreneur anticipated legal troubles.
S. Korea indicates Do Kwon Retained law firm before Terra collapse

The South Korean prosecutors indicated that Do Kwon transferred money to a law firm in South Korea shortly before the failure of Terraform Labs, which wiped out US$60 billion (S$79.8 billion) from the crypto market, as reported by Bloomberg.

The prosecutors’ office in Seoul stated in a text message on Monday that a claim by KBS News that Kwon delivered 9 billion won ($7 million) to law firm Kim & Chang, including a payment soon before the collapse of the TerraUSD and Luna tokens, “isn’t false.”

The timing of the payment to lawyers implies that Kwon anticipated legal problems as his crypto enterprise deteriorated.

“We are unable to provide specifics on individual cases,” Kim & Chang said in a text message when asked about the report from KBS News.

“We have conducted our legal advisory services as usual and have legitimately received the fee for the services,” the company said to Bloomberg.

Kwon was arrested in March in Montenegro and has been charged with fraud by US prosecutors. In South Korea, he is also charged with violating capital-markets law.

Kwon, 31, is a co-founder of the Terraform Labs cryptocurrency company. He and the firm’s former chief financial officer, Han Chang-joon, were jailed in Montenegro.

Also read: S. Korean Prosecutors: Do Kwon Converted Illicit Funds from LUNA to Bitcoin

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