It has been confirmed by South Korean prosecutors, as reported by KBS News, that Do Kwon, the CEO of Terraform Labs, transferred 9 billion won ($7 million) to Kim & Chang, a leading law firm in South Korea, just before the Terra ecosystem’s collapse. Prosecutors consider this as a deliberate move that indicates Kwon’s knowledge of the impending collapse and his anticipation of legal problems. The ongoing fraud case is believed to benefit from this information. Kwon was previously arrested at Podgorica airport in Montenegro after attempting to fly to Dubai with fake documents. Both US and South Korean authorities have sought his extradition, but the court has yet to decide.
Kwon was suspected by South Korean prosecutors of converting illicit funds from Terra to Bitcoin on April 7. Binance was asked to halt all withdrawal requests related to Kwon. Prosecutors identified 414.5 billion won ($314.2 million) in illicit assets associated with Kwon and his associates, of which about 91.4 billion won ($69 million) is directly linked to Kwon. A Binance spokesperson declined to comment on ongoing law enforcement investigations.
