The former crypto mogul – Do Kwon – reportedly sent 9 billion won (approximately $6.9 million) to law firm Kim & Chang before the Terra collapse last spring.
The 31-year-old South Korean was detained last month in Montenegro after allegedly changing locations in the past several months. A trial against him will determine whether he played a role in the LUNA/UST fallout.
- According to Bloomberg, South Korean prosecutors said the recent speculation that Kwon had transferred the funds to Kim & Chang just before the infamous crash “isn’t false.”
- On the other hand, the law company was reluctant to share additional details on the matter:
“We are unable to provide specifics on individual cases. We have conducted our legal advisory services as usual and have legitimately received the fee for the services.”
- Multiple agencies and regulators, as well as prosecutors, accused Terraform Labs’ Co-Founder – Kwon – of being the main culprit behind the notorious demise of the native token – LUNA – and the algorithmic stablecoin – UST – in May 2022.
- Apart from the painful investor losses, the $60 billion wipeout caused some to commit suicide. Despite the urgency of the situation, Kwon did not cooperate with the relevant entities at the time and supposedly escaped his homeland to avoid a court trial.
- His whereabouts remained a secret for nearly a year, with Dubai, Singapore, Russia, and Serbia being some of the possible locations. He was finally arrested in March 2023 at the airport of Podgorica (the capital of Montenegro).
- While the domestic magistrates required Kwon to remain under custody on local soil for an extended period of 30 days, his attorneys vowed to appeal the decision.
- Both the USA and South Korea have requested his extradition, and it remains unclear where he will face justice.
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