• Prosecutors investigating failed blockchain firm Terraform Labs have found out that its Singapore office sent millions of U.S. dollars to lawyers just before the crash of its cryptocurrencies.
• The transfers suggest that co-founder Do Kwon was aware of the imminent collapse.
• Do Kwon is going to stand trial in Montenegro for traveling on false documents, before Podgorica considers his extradition to either South Korea or the United States, where he is charged with masterminding the crypto fraud.
Terraform Labs Transferred Millions of Dollars Before Collapse
Prosecutors investigating failed blockchain firm Terraform Labs have found out that its Singapore office sent millions of U.S. dollars to lawyers just before the crash of its cryptocurrencies. According to Korean media, the transfers suggest that co-founder Do Kwon was aware of the imminent collapse.
Kim & Chang Received 9 Billion Won from Terraform
South Korean prosecutors revealed that the company has paid a total of 9 billion won (nearly $7 million) to Kim & Chang, the country’s leading law firm, national broadcaster KBS reported. Tracking financial flows from its Singapore headquarters, they were able to establish that the funds were sent in several transactions which started right before the collapse of Terraform’s digital currencies, stablecoin terrausd and cryptocurrency luna, in May of last year.
Investigate Source Of Payments To Confirm Embezzlement Charges
Investigators from Seoul are cooperating with law enforcement authorities in Singapore to confirm the source of the payments. If it turns out that the blockchain firm has cashed out digital coins, charges of embezzlement may be brought against its management. It has been estimated that around 200,000 people bought Terraform’s cryptocurrencies and suffered heavy losses when their collapse erased billions of dollars in market value.
Do Kwon Arrested In Montenegro For Traveling On False Documents
Do Kwon (Kwon Do-Hyung) was arrested by authorities in Montenegro in March, together with the company’s Chief Financial Officer Han Chang-joon, while trying to leave for Dubai. He is going to stand trial in the Balkan nation for traveling on false documents, before Podgorica considers his extradition to either South Korea or the United States, where he is charged with masterminding the crypto fraud.
Conclusion
The report suggests that Terraform’s chief executive was aware in advance of