Do Kwon reportedly hires lawyers in S.Korea to prepare for Terra investigation

by Abiodun Oladokun
7 ways to make with crypto

Terraform Labs co-founder Do Kwon has claimed that Korean authorities haven’t contacted or filed any charges against him in the Terra investigation.

Do Kwon reportedly hires lawyers in S.Korea to prepare for Terra investigation

Terraform Labs co-founder Do Kwon has reportedly hired a lawyer from a domestic law firm in South Korea just days after claiming the South Korean authorities are yet to reach out to him or file any charges against him.

According to a local media report, Kwon recently submitted a letter of appointment to an attorney at the Seoul Southern District Prosecutors’ Office, the department that is currently investigating the Terra-LUNA collapse.

While Kwon claims no charges were filed against him, prosecutors in South Korea behind the investigation of Terraform Labs reportedly executed a search and seizure in 15 firms in the third week of July. It includes seven crypto exchanges linked to now-defunct Terra’s collapse.

Prosecutors reportedly notified Kwon, who was staying in Singapore and banned the departure of key people.

South Korean authorities began an investigation into the $40 billion Terra ecosystem collapse soon after the ecosystem’s implosion in May. The first action came towards the end of May when the authorities decided to form a new crypto oversight committee to avoid Terra-like incidents in the future. Later, CEO Kwon was sued and accused of fraud and violation of several financial acts.

Later, in June, the authorities began a formal investigation into the incident and found Terraform Labs guilty of tax evasion and market manipulation. Prosecutors in the country banned Terraform Lab employees from leaving the country.

The Terra-USD collapse and implosion of a $40 billion ecosystem had a catastrophic impact on the larger ecosystem. The incident later led to a crypto contagion that claimed several crypto lenders and hedge funds.

7 ways to make money in crypto

You may also like

Leave a Comment

The latest news about crypto industry at Coingraph. Most recent news about bitcoin, altcoin, blockchain, mining, cryptocurrency prices and more.

 

Email: [email protected]

© 2022 Coingraph.org – All rights reserved.