The post Did Do Kwon Lawyers Receive $7 Million Prior to Terra’s Collapse? appeared first on Coinpedia Fintech News

The designer of the Terra blockchain platform, which is no longer operational, has been targeted by the US Securities and Exchange Commission in a securities fraud lawsuit. The lawsuit claims that Do Kwon, co-founder of Terraform Labs, participated in a deceitful scheme that resulted in the loss of at least $40 billion in market value. As a result, a warrant for Kwon’s arrest has been issued by South Korea. There have been recent updates related to this case, read on.

Lawyers of Do Kwon received $7 million prior to the collapse of Terra

Do Kwon, the CEO of Terraform Labs, sent Kim & Chang, a prominent South Korean law firm, 9 billion won ($7 billion) just before the stunning collapse of the Terra ecosystem, according to South Korean prosecutors.

According to KBS News, Kwon’s choice to pay millions of dollars to the law firm was viewed by prosecutors as a planned action that reportedly pointed out his awareness of the approaching collapse and anticipated legal issues.

The information, in the opinion of the prosecution, will be helpful in the continuing fraud case. In addition, Kwon and Terraform’s former CFO, Han Chang-joon, was met by Kim & Chang’s attorneys during their trip to Montenegro.

Kwon was previously detained at the airport in Podgorica, Montenegro, after attempting to board a flight to Dubai using forged documents. Both American and South Korean officials have requested Kwon’s extradition since his detention. The court has not yet made a decision, though.

What have the prosecutors discovered?

On April 7, it was announced that Kwon was under suspicion by South Korean prosecutors of converting illicit profits from Terra to Bitcoin. Binance was asked by the prosecutors to stop all withdrawal requests related to Kwon.

Illicit assets connected to Terraform Labs co-founder Kwon and his accomplices have been found to reach 414.5 billion won ($314.2 million). Out of this, Kwon is said to be directly connected to around 91.4 billion won ($69 million).

It seems like Do Kwon anticipated the collapse and made arrangements for the same. What do you think about this?