A new report reveals that Do Kwon, founder of Terra, allegedly sent millions of dollars to a law firm in South Korea just before the Terra ecosystem collapsed.
The mysterious sending of millions and the lawyers of Kim & Chang
Do Kwon sought to convert his assets into bitcoins to escape seizure of his property. However, the inherent transparency of the blockchain seems to be detrimental to it.
The founder of Terraform Labs, was recently at the heart of a case that hit the headlines. Indeed, the latter would have sent the tidy sum of 9 billion won, or $7 million, to a South Korean law firm, Kim & Chang.
This transaction, carried out shortly before the collapse of the stablecoin Terra, raises many questions. The situation is all the more troubling since its twin cryptocurrency, Luna, has also experienced a significant drop.
South Korean media KBS Newswhich revealed the information, suggests that this sending could be a sign that Do Kwon was preparing to face legal problems related to the implosion of his cryptocurrency empire.
The case takes an even more intriguing turn when we learn that lawyers from the firm Kim & Chang traveled to Montenegro to meet Do Kwon and the former financial director of Terraform Labs.
Asked about this, the lawyers simply stated that they had ” provided [leurs] legal advisory services as usual and [avaient] legitimately received fees for these services. »
Arrest, extradition and charges: Do Kwon’s descent into hell
The case takes a legal turn when Do Kwon is arrested at the airport in Podgorica, Montenegro. Authorities in the country confirm that the United States and South Korea have requested the deposed cryptocurrency tycoon’s extradition. From now on, a Montenegrin judge will decide on this question.
Besides, Do Kwon has to face a veritable firework of accusations. In the United States, he was charged with securities fraudwire fraud, commodity fraud and conspiracy.
US prosecutors notably accuse Do Kwon of having made false and misleading statements during a television interview.
Meanwhile, South Korea has also issued an arrest warrant for Do Kwon, accusing him of violating financial market law and committing fraud. Finally, the prosecutors of Montenegro are also considering prosecution for falsification of official documents.
The Do Kwon and Terra case promises to be a real legal thriller, with twists and turns and considerable stakes. Investors lost nearly $40 billion following the collapse of the Terra ecosystem. They are now hanging on to the outcome of this saga.
What will be the outcome for Do Kwon, between extraditions and multiple charges? Only the future will tell us. Nevertheless, it is fascinating to observe that the actions of players within the ecosystem do not hinder the progress of cryptocurrencies. Currently, they are seen as digital havens in the face of global chaos.
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