Do Kwon should better call Seoul fast and hire the best lawyer in the city to defend him when things start to get serious, following the collapse of Terraform Labs.
Well, the disgraced architect of the once multi-billion dollar Terra ecosystem actually just hired a new attorney in South Korea, just days after stating the South Korean authorities have yet to reach out or file any legal charges against him.
The downfall of Terra’s UST algorithmic stablecoin and its sister token LUNA in May sent shockwaves across the cryptocurrency market, unleashing a domino effect that forced a number of prominent crypto lenders and hedge funds to cease operations.
Do Kwon Appoints New Legal Counsel
Based on a recent report by the Korean media outlet WowTV, Do Kwon recently submitted a letter of appointment to a lawyer at the Seoul Southern District Prosecutor’s Office, the office spearheading the probe against him.
According to reports, South Korean prosecutors investigating Terraform Labs conducted a search and seizure of 15 companies during the third week of July, despite Dow Kwon’s assurance that no charges had been brought against him. It lists seven crypto exchanges associated with Terra’s bankruptcy.
Terraform Labs Founder Do Kwon. Image: Crypto News
Prosecutors reportedly informed Kwon, who was in Singapore, and prohibited the departure of senior ranking individuals.
Kwon also stated that he will be entirely truthful with prosecutors and the courts by revealing pertinent information concerning the catastrophe. When questioned about the likelihood of incarceration, he responded, “Life is long.”
Better Call Seoul: Do Kwon In Hot Water
Do Kwon and Terraform Labs drew the attention of authorities from many jurisdictions in the aftermath of the calamitous Terra meltdown, which erased $45 billion from the crypto market in a matter of days.
In particular, Korean authorities are looking into Do Kwon for pricing manipulation, tax evasion, and possible Ponzi scheme operation. As of this writing, employees of Terraform Labs are forbidden from leaving South Korea while investigations are ongoing.
In June, a court ordered Do Kwon to comply with a U.S. Securities and Exchange Commission (SEC) subpoena concerning the Mirror Protocol, which enables the trading of synthetic replicas of conventional securities.
Anonymous, a decentralized international activist and hacktivist organization, stated last month that it intended to hold Kwon accountable for the Terra disaster, but did not provide specifics.
The hacking group declared:
“The actions of Do Kwon, the founder of the Terra ecosystem, are solely responsible for retail investors losing billions of dollars.”
Crypto total market cap at $1.09 trillion on the daily chart | Source: TradingView.com Featured image from Pinterest, Chart from TradingView.com
