South Korean authorities have confirmed a report that Do Kwon, the founder of Terraform Labs, paid $7 million to his law firm before the Terra ecosystem imploded.
Indeed, South Korean prosecutors claim that before the Terra ecosystem collapsed, its founder, Do Kwon, had prepaid a top law firm in South Korea. About 9 billion won ($7 million) was sent to the law firm Kim & Chang.
This Monday, the Seoul prosecutor’s office said that Do Kwon, whose run ended last month, sent funds to his law firm before the stablecoin launched by his startup UST and the cryptocurrency LUNA collapsed, Bloomberg reports.
Last week, local media outlet KBS News reported that the Terraform chief had sent 9 billion won (about $7 million) to Kim & Chang’s law firm – some of it just before the drama. The report “is not false,” the South Korean government said.
We conducted our legal consulting services as usual and legitimately received the fees for the services,” Kim & Chang defended itself.
At the end of March, Do Kwon was finally caught in Montenegro. The Terraform chief is now facing charges in South Korea and the United States. He will first be tried in Montenegro before being extradited.
Nearly $40 billion went up in smoke following the Terra ecosystem crash last year, which subsequently triggered several large-scale bankruptcies, including 3AC.
