Do Kwon, the co-founder and CEO of now-defunct Terraform Labs, reportedly retained legal counsel from a local South Korean law firm just days after claiming that the country’s authorities would not had not yet contacted or brought charges against him.
According to a local media report, Kwon recently sent an appointment letter to a lawyer from the Seoul Southern District Prosecutor’s Office, the division investigating the collapse of the Terra (LUNA), now known as Terra Classic (LUNC).
Although Kwon insists that no charges have been brought against him, it was reported that in the third week of July, 15 businesses were raided and their assets seized by South Korean prosecutors. Koreans who examine the activities of Terraform Labs.
This concerns cryptocurrency exchanges allegedly linked to the Terra crash.
According to reports, prosecutors informed Kwon, who was still in Singapore, and banned the departure of some people from South Korea.
Terra Investigations in South Korea
Shortly after the collapse of the estimated $40 billion ecosystem in May, South Korean authorities launched an investigation into the case. To prevent similar events from happening again, the authorities took a first step towards the end of May by deciding to create a new cryptocurrency watchdog. Later, CEO Kwon was charged with fraud and violating a number of financial laws and is currently being sued.