South Korea signals Do Kwon retained law firm before Terra collapse that roiled crypto

SEOUL – South Korean prosecutors indicated that

fallen crypto entrepreneur Do Kwon

sent funds to a local law firm just before tokens he created suffered a US$60 billion (S$79.8 billion) wipeout that shook the digital-asset sector.

A report by KBS News that Kwon sent nine billion won (S$9.1 million) to law firm Kim & Chang – including a payment just ahead of the collapse of the TerraUSD and Luna tokens – “isn’t false”, the prosecutors’ office in Seoul said in a text message on Monday.

The timing of the payment to lawyers suggests Kwon may have anticipated legal ructions as his crypto project frayed.

“We are unable to provide specifics on individual cases,” Kim & Chang said in a text message, when asked about the report from KBS News.

“We have conducted our legal advisory services as usual and have legitimately received the fee for the services,” the company added, without elaborating.

Kwon was arrested in Montenegro in March

and has been accused of fraud by US prosecutors. He also faces charges in South Korea, including breaching capital-markets law.

Kwon, 31, co-founded the Terraform Labs crypto business. He was detained in Montenegro along with the firm’s former chief financial officer Han Chang-joon.

Kwon is expected to be extradited in time to either the United States or South Korea. BLOOMBERG