In a stunning development, South Korean prosecutors have confirmed that Do Kwon, CEO of Terraform Labs, sent 9 billion won ($7 million) to the top South Korean law firm Kim & Chang just before the collapse of the Terra ecosystem. According to a report by KBS News, prosecutors claim that this action indicates Kwon’s awareness of the impending collapse and anticipated legal issues. This revelation has raised concerns about potential ethical violations and conflicts of interest.
In a shocking twist, it has been revealed that Kim & Chang was also the legal representative of Oxy in the infamous humidifier disinfectant case, according to the same KBS report. Over four years, the law firm received 9.5 billion won ($7.2 million) from Oxy, further raising concerns about potential conflicts of interest.
Prosecutors are reportedly investigating whether Kwon’s decision to send billions to the law firm was a deliberate move to siphon off criminal proceeds under the guise of legal representation. The prosecution believes that even the money already remitted to Kim & Chang can be collected and preserved if proven true. This investigation is ongoing, and many are eagerly awaiting further details about the scandal and its potential fallout.
The collapse of the Terra ecosystem has left an estimated 200,000 people who bought Terra Luna before and after the crash out of pocket, with Kwon yet to compensate them a single penny. The story has already sent shockwaves throughout the financial community, and it remains to be seen what impact it will have in the broader cryptocurrency industry.
Kwon was previously detained at the airport in Podgorica, Montenegro, after attempting to board a flight to Dubai using forged credentials. American and South Korean officials have requested Kwon’s extradition since his detention. However, the court has not yet made a decision.
The situation surrounding Terraform Labs and Do Kwon is a complex and rapidly evolving one. As the investigation continues, it is essential to maintain journalistic standards and report on the facts as they emerge. The potential fallout from this scandal could have far-reaching consequences for the cryptocurrency industry and beyond, and it is crucial to stay informed about the latest developments.
