The head of Terraform Labs (TFL), Do Kwon, sent 9 billion won ($7 million) to leading South Korean law firm Kim & Chang over the course of several months before the Terra ecosystem collapse. This, according to KBS News citing the prosecutor’s office.
Officials described Kwon’s actions as intentional, suggesting his awareness of the looming collapse and potential legal trouble. The information could serve as further evidence of the TFL chief’s culpability.
Authorities are tracing the origin of the funds sent to Kim & Chang. If authorities prove that the firm illegally cashed out client assets, Do Kwon could face embezzlement charges.
23 March 2023, Montenegro police arrested Do Kwon, who was attempting to fly from Podgorica airport to Dubai using forged documents.
The arrest followed requests from U.S. law enforcement authorities, Singapore and South Korea. Earlier media, citing Seoul prosecutors, reported that he is hiding in Serbia.
On March 29, it became known that Kwon will stand before a court in Montenegro before extradition. The U.S. Attorney’s Office in New York also brought eight counts of criminal charges against the co-founder of TFL.
In April, investigators discovered illicit assets linked to TFL and Do Kwon worth $314 million.