A recent report has shed light on new findings regarding the Terraforms Labs (TFL) blockchain project collapse last year. Korean prosecutors investigating the flow of funds from TFL’s headquarters in Singapore have discovered that about 9 billion won, which is nearly $7 million, was remitted to Korea’s most prominent law firm, ‘Kim & Chang,’ just before the crash. The source of the money is now being traced, and embezzlement charges could apply if it is found that the company cashed in coins.
The transfer timing is also being scrutinized, as it is suspected that the CEO, Kwon Do-Hyung, may have been aware of the potential for a collapse and prepared legal responses accordingly, which could further support the allegations of fraud against him. While Kim & Chang has refused to disclose the name under which the funds came, prosecutors believe the money can still be collected and preserved even if it was disguised as a legal response.
Terra is currently under investigation over allegations of fraud and embezzlement of 414.5 billion Korean WON, which is equivalent to $350 million. CEO Dohyung and the firm’s management team are accused of deceiving investors and collecting billions through the ill-fated LUNA and UST. It is estimated that around 200,000 people purchased Terra Luna and lost money due to the collapse, for which CEO Kwon has not compensated.
The prosecution theorized that Dohyung took a criminal profit of 91.4 billion KRW or $81 million, converted a significant portion of his assets into virtual currencies such as Bitcoin, and transferred them to overseas asset exchanges. At the same time, Shin Hyun-Seong, a co-founder, was said to have collected $137 million, while the remaining seven Terra employees were accused of sharing $150 million.
The investigation has revealed that Terra LUNA sent $7 million to law firm Kim & Chang before the collapse. This new information has added to the ongoing investigation into the allegations of fraud and embezzlement against CEO Kwon Do-Hyung and the management team at TFL. The discovery of the money transfer has raised suspicions that the CEO may have been aware of the impending collapse and prepared legal responses accordingly.
The investigation into Terra and TFL has been ongoing, with the prosecution working to uncover the truth behind the collapse and the allegations of fraud and embezzlement. The collapse of the blockchain project has affected many investors who have lost money due to the actions of the management team. The discovery of the transfer of funds to Kim & Chang has added a new dimension to the investigation, and it remains to be seen what impact this will have on the outcome.
The investigation is ongoing, and more information is expected to come to light in the coming weeks and months. The prosecution is working diligently to uncover the truth behind the collapse of the blockchain project and the allegations of fraud and embezzlement against the management team at TFL. Investors who have lost money due to the collapse are eagerly awaiting the outcome of the investigation and hoping for some form of compensation for their losses.
