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
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

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.

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is an award-winning media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. In November 2023, CoinDesk was acquired by Bullish group, owner of Bullish, a regulated, institutional digital assets exchange. Bullish group is majority owned by Block.one; both groups have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary, and an editorial committee, chaired by a former editor-in-chief of The Wall Street Journal, is being formed to support journalistic integrity.

Amitoj Singh

Amitoj Singh is a CoinDesk reporter.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.