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Do Kwon Hired South Korean Law Firm Just Before Terra’s $40 Billion Crash

EthereumWorldNews

Cryptocoins News / EthereumWorldNews 103 Views

Do Kwon

Summary:

  • Terraform Labs founder Do Kwon retained a South Korean law firm shortly before his crypto company collapsed in May.
  • Kwon paid local firm Kim & Chang $9 billion won ($7 million) leading up to Terra’s astronomical crash, Bloomberg and local media house KBS News.
  • South Korean and U.S. governments have requested extradition after the fugitive founder was arrested in Montenegro with fake travel documents.&

Fugitive founder Do Kwon paid $9 billion won ($7 million) to a South Korean law firm with part of the funds transferred shortly before Terraform Labs, Kwon’s crypto business, imploded around mid-2022.

The news was reported by Bloomberg and local media house KBS News citing notes from prosecutors. Kim & Chang, the law firm Kwon retained, also told Bloomberg that the news “isn’t false”. The law firm refrained from sharing details of the dealings with Kwon claiming to be “unable to provide specifics on individual cases.”

We have conducted our legal advisory services as usual and have legitimately received the fee for the services

– Kim & Chang to Bloomberg

Kim & Chang received 9 billion won ($7 million) from Kwon, per reports. Part of this supposed legal fee was transferred to the legal firm leading up to Terra’s massive collapse in May 2022 which rocked the broader crypto ecosystem and triggered significant dips in asset prices.

Terraform Labs crashed following turbulence with TerraLUNA (LUNA) and TerraUSD (UST), the sister tokens designed by Do Kwon. Terra’s crash triggered a domino effect as other centralized finance players in the crypto space like Three Arrows Capital had exposure to LUNAs and USTs ecosystem.

Wen Do Kwon extradition?

Do Kwon’s whereabouts became a hot topic following the spectacular crash of his crypto venture last year. After failing to appear before the South Korean Congress to testify about Terra’s crash, local authorities moved to invalidate Do Kwon’s passport. Interpol also issued a red notice for his arrest.

The Terra boss was arrested in Montenegro while trying to leave the country using falsified travel documents at a Podgorica airport. Governments from the U.S. and South Korea have both requested extradition.

Local authorities are also on the hunt for Do Kwon’s suspected $69 million fortune. Prosecutors said they found none of Kwon’s assets in the country.


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