Do Kwon Retained Law Firm in South Korea Before Terra's Collapse: Report

South Korean prosecutors confirmed a report that Kwon sent $7 million to a local law firm in the months leading up to his venture's dramatic fall.

AccessTimeIconApr 17, 2023 at 8:31 a.m. UTC
Updated Apr 17, 2023 at 8:36 a.m. UTC

Do Kwon sent funds to a South Korean law firm just before the collapse of Terraform Labs, the crypto platform he founded, according to a Bloomberg report citing prosecutors in the country.

South Korea's KBS News reported Kwon sent 9 billion won ($7 million) to law firm Kim & Chang, which included a payment just ahead of the collapse of the Terra ecosystem in May 2022. South Korean prosecutors said the report “isn’t false,” in a Monday text message to Bloomberg.

Kim & Chang told Bloomberg that the law firm was "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,” the firm told Bloomberg.

The South Korean prosecutors' office and Kim & Chang didn't immediately respond to CoinDesk's request for comment.

South Korea and the U.S. have requested the extradition of the Terraform Labs CEO after his recent arrest in Montenegro. Kwon is facing criminal charges in both countries after his $60 billion crypto ecosystem came crumbling down, hurting the industry globally.


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Amitoj Singh

Amitoj Singh is a CoinDesk reporter.