Do Kwon apparently employs South Korean attorneys to get ready for Terra probe

By: Michael Wilson

August 18, 2022 4:31 AM

Do Kwon, a co-founder of Terraform Labs, asserted that he has not been contacted by Korean authorities or subject to any accusations relating to the Terra probe.

Do Kwon, a co-founder of Terraform Labs, is said to have retained legal counsel from a local South Korean law firm just days after asserting that the country's authorities have not yet contacted him or brought any accusations against him related to Terra Luna demise.

An attorney at the Seoul Southern District Prosecutors' Office, the division looking into the collapse of Terra-LUNA, now known as Terra Classic (LUNC), recently received a letter of appointment from Kwon, according to a story in the local media.

Despite Kwon's claim that no charges have been brought against him, prosecutors in South Korea looking into Terraform Labs allegedly conducted a search and seizure in 15 businesses during the third week of July. It consists of seven cryptocurrency exchanges connected to the demise of the now-defunct Terra.

According to reports, prosecutors informed Kwon, who was still in Singapore, and prohibited the departure of important individuals.

Soon after the $40 billion Terra ecosystem collapsed in May, South Korean officials launched a probe into the matter. To prevent future occurrences similar to Terra, the authorities took the first step around the end of May by deciding to establish a new crypto monitoring body. Later, CEO Kwon was accused of fraud and breaking a number of financial laws and was sued.

Authorities launched a formal investigation into the incident in June, and Terraform Labs was later found to have engaged in market manipulation and tax evasion. Employees at Terraform Lab are not permitted to leave the country, according to the local prosecutors.

The $40 billion Terra-USD ecosystem's breakdown and implosion had a disastrous effect on the wider ecosystem. Later, a crypto pandemic caused by the tragedy resulted in the deaths of other crypto lenders and hedge funds.