- Terra CEO Do Kwon sent $7 million to Kim & Chang before the ecosystem collapsed, prosecutors confirmed.
- Kim & Chang was also the legal representative of Oxy in the infamous toxic humidifier disinfectant case.
- Over 200,000 Terra Luna investors still await compensation.
In a shocking revelation, South Korean prosecutors have confirmed that Terraform Labs CEO, Do Kwon sent 9 billion won ($7 million) to a top South Korean law firm, Kim & Chang, just before the collapse of the Terra ecosystem. As reported by KBS news, prosecutors claim this decision indicates Kwon’s awareness of the impending collapse and anticipated legal problems.
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. The law firm received 9.5 billion won ($7.2 million) from Oxy over four years, raising concerns about potential conflicts of interest and ethical violations.
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.
Meanwhile, it is estimated that around 200,000 people who bought Terra Luna before and after the crash have lost money, and Kwon has yet to compensate them a single penny. As the investigation continues, many eagerly await further details about the scandal and its potential fallout. 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. The court has not made a decision, however.
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