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Crypto News: The arrest of Terraform Labs Co-founder Do Kwon in Montenegro is unraveling interesting wherabouts from behind the scenes of the collapse almost 10 months later. According to latest reports, concrete proof is emerging to believe that Kwon knew beforehand about the collapse of the network. The incident wiped out billions of dollars worth value and investor money from the crypto market over a crisis that dragged for several months in 2022. In fact, the Terra co-founder appears to have anticipated legal issues surrounding the shock collapse.
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Following his arrest in Montenegro, authorities of South Korea and United States are seeking Kwon’s extradition. He was arrested on March 23, 2023 in Podgorica, Montenegro.
Do Kwon Transferred Funds Before Terra Collapse
According to a Bloomberg report, Kwon sent around $7 million to a reputed South Korean law firm before the Terra collapse unfolded on May 9, 2022, erasing almost $500 billion from the crypto market. This could be a huge revelation that could aide in the investigation, as money transfer to lawyers just before the collapse suggests he was well aware of it. In fact, the lawyers from Kim & Chang were on a trip to Montenegro recently to meet with Kwon and Terraform former chief financial officer, Han Chang-joon, the report said.
The Terra founder is facing charges of orchestrating a cryptocurrency fraud both in the US as well as South Korea. Also, investigators would be looking at the source of the funds he transferred to the law firm.
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