The spectacular arrest of Terraform Labs’ notorious CEO Do Kwon in Montenegro continues to dominate the news. Recently, a shocking new revelation surfaced that Kwon allegedly prepaid his lawyers a cool $7 million just before the fall of his empire. This revelation raises questions about Kwon’s management of Terraform Labs’ funds and reveals that Kwon would have carefully planned his defense long before the company went under.
Do kwon paid $7 million to his lawyers before Terra Luna’s failure
Following the arrest of Do Kwon in Montenegro, South Korean prosecutors discovered that the CEO of Terraform Labs had a plan in mind for a while…
Indeed, according to KBS News, Kwon allegedly prepaid a whopping 9 billion won, or $7 million, to a prominent law firm to prepare his defense. A deliberate choice according to the prosecutors, who believe that Kwon was aware of the impending collapse of his business and that he had planned everything to escape a possible conviction.
Mysterious origin of Terraform Labs CEO’s prepaid funds: investigation underway
South Korean prosecutors and Singaporean authorities are investigating to determine the origin of funds deposited by Do Kwon before the collapse of Terraform. They suspect that the funds given to the law firm Kim and Chang were obtained illegally, and seek to recover them in the name of justice.
The thousands of victims of the collapse who have not yet been compensated have claimed this investigation, according to KBS News.
Do Kwon was arrested in Montenegro last month after several months on the run, while attempting to travel to Dubai with false documents. U.S. and South Korean authorities have requested his extradition without success.
Unfortunately, this case is not an isolated one. It reminds us of the FTX scandal with our very own Sam Bankman Fried, a dishonest CEO who embezzled user funds to satisfy his own selfish interests. All is not well in blockchain, so be careful.
Coming from a journalism university background, I came across Bitcoin and cryptocurrencies not long ago.
The potential of the Blockchain seduced me and I made it my research topic.