South Korean prosecutors have alleged Do Kwon, sent $7B worth of cryptocurrency to a top South Korean law firm.
Kim & Chang, recieved the money right before the collapse of the Terra ecosystem. The prosecutors claim that this move was a deliberate attempt to reaffirm Kwon’s awareness of the impending collapse and anticipate expected legal problems.
The prosecutors believe that the information will help in the ongoing fraud case against Kwon. In addition, lawyers from Kim & Chang visited Montenegro to meet with Kwon and Terraform’s former CFO, Han Chang-joon.
Kwon was previously arrested at Podgorica airport in Montenegro after trying to fly to Dubai using fake documents. Both US and South Korean authorities have sought Kwon’s extradition, but the court is yet to decide.
On April 7, it was revealed that South Korean prosecutors suspected Kwon of converting illicit funds from Terra to Bitcoin. The prosecutors requested Binance to halt all withdrawal requests linked to Kwon.
Prosecutors have identified 414.5 billion won ($314.2 million) in illicit assets associated with Kwon and his associates, out of which about 91.4 billion won ($69 million) is reportedly directly linked to Kwon.
Binance, the cryptocurrency exchange linked to Kwon, confirmed that they provided Korean law enforcement authorities with requested assistance. A Binance spokesperson declined to comment further, citing ongoing investigations.
Terraform Labs is a blockchain platform that offers a stablecoin pegged to the US dollar, called UST, as well as various other tokens. Kwon co-founded the platform in 2018 and it has gained significant popularity in the DeFi space.
The collapse of Terra’s ecosystem and Kwon’s subsequent arrest have been major blows to the platform’s reputation. However, Terra has announced that it will continue to operate and has emphasized its commitment to transparency and security.
The ongoing case against Kwon highlights the challenges faced by regulators and law enforcement agencies as they try to keep up with the rapidly-evolving world of cryptocurrency.
While the decentralized nature of cryptocurrencies can make them difficult to track and regulate, this case shows that it is still possible to identify illicit activity and bring those responsible to justice.
Do kwon sent lawyers $7m
In conclusion, the allegations against Kwon and the ongoing fraud case highlight the need for increased regulation and oversight in the cryptocurrency industry.
While the decentralized nature of cryptocurrencies offers many benefits, it also presents challenges in terms of accountability and transparency. As the industry continues to evolve, it will be important for regulators and law enforcement agencies to develop effective strategies for identifying and preventing fraudulent activity.