Do Kwon lawyers received $7 million before Terra collapse: Report

South Korean prosecutors confirmed that Terraform Labs CEO Do Kwon sent $7 million (9 billion won) to Kim & Chang — a top South Korean law firm — right before the collapse of LUNA (LUNA) and UST ecosystems.

Kwon’s decision to send millions to Kim & Chang law firm was flagged by prosecutors as a deliberate move, which allegedly reaffirmed his awareness of the upcoming collapse and anticipated expected legal problems, as reported by KBS News.

Prosecutors, while trying to tie in Kwon’s ill intent in prepaying the law firm, believe that the information will help in the ongoing fraud case. In addition, Kim & Chang lawyers visited Montenegro to meet with Kwon and Terraform’s former chief financial officer, Han Chang-joon.

Previously, Kwon was arrested at Podgorica airport in Montenegro after trying to fly to Dubai using fake documents. Following his arrest, both US and South Korean authorities have sought Kwon’s extradition. However, the court is yet to come to a decision on the same.

On April 7, South Korean prosecutors suspected Kwon of converting illicit funds from LUNA to Bitcoin (BTC). The prosecutors requested Binance to halt all withdrawal requests linked to Kwon.

In total, prosecutors identified 414.5 billion won ($314.2 million) in illicit assets associated with Terraform Labs co-founder Kwon and his associates, out of which, about 91.4 billion won ($69 million) is reportedly directly linked to Kwon.

“We provided Korean LE authorities with the requested assistance. Since we cannot comment on ongoing LE investigations, for any further comment please reach out to the prosecutors,” said a Binance spokesperson, speaking to Cointelegraph about the matter.