Terraform Labs Do Kwon Sent Millions to Lawyers Right Before Terra's Collapse

Terraform Labs CEO Do Kwon allegedly transferred $7 million to a South Korean law firm right before the dramatic downfall of the Terra ecosystem.

According to local news portal KBS News, South Korean prosecutors have suspected that Do Kwon's move was a calculated attempt to brace for impending legal issues tied to the collapse.

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Prosecutors are looking into Kwon's possible malicious intentions over paying the law firm, Kim & Chang, to strengthen the ongoing fraud case against Terraform Labs CEO.

It is worth noting that allegations appear to be more truthful than not. Several sources reported that the law firm's representatives traveled to Montenegro to meet Kwon and Terraform's ex-CFO, Han Chang-joon.

At the end of March, Do Kwon was arrested at the Podgorica airport in Montenegro while attempting to travel to Dubai using fake documents. Both US and South Korean authorities are currently seeking his extradition. However, local authorities in Montenegro stated that Kwon would have to be prosecuted for his illegal action in Montenegro before any extradition was considered.

South Korean prosecutors recently disclosed suspicions that Kwon had converted illegal funds from Terra to Bitcoin (BTC). Subsequently, authorities asked Binance to halt all withdrawals tied to Do Kwon.

At that time, when asked about compliance with South Korean authorities, a crypto exchange Binance spokesperson noted:

We provided Korean LE authorities with the requested assistance. Since we cannot comment on ongoing LE investigations, for any further comment, please reach out to the prosecutors.

The hunt for Do Kwon lasted for almost seven months. It was believed that the man hid in Dubai and Singapore before fleeing to Serbia.