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South Korean Prosecutor Alleges Pre-Terra Crash Knowledge and Possible Fraud

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According to reports, South Korean prosecutors found that shortly before the Terra crash, Do Kwon remitted 9 billion Korean won (approximately $7 million) to Kim&Chang, a large law

South Korean Prosecutor Alleges Pre-Terra Crash Knowledge and Possible Fraud

According to reports, South Korean prosecutors found that shortly before the Terra crash, Do Kwon remitted 9 billion Korean won (approximately $7 million) to Kim&Chang, a large law firm in South Korea. The prosecutor is tracking the source of this money. The South Korean prosecutor stated that it can be inferred that Do Kwon was aware of the possibility of collapse in advance and prepared legal measures. This can serve as another basis for proving that Do Kwon is suspected of fraud.

Do Kwon remitted 9 billion Korean won to a law firm before Terra’s collapse

As per reports from South Korean prosecutors, it has been found that Do Kwon, the founder of Terra, remitted 9 billion Korean won (approximately $7 million) to Kim&Chang, one of the largest law firms in South Korea, shortly before the Terra crash. The prosecutor is investigating the source of this money and believes that Do Kwon may have known of the possibility of the collapse in advance and prepared legal measures. This finding will serve as yet another basis to prove Do Kwon’s suspected fraud in the Terra crash. This article will take a closer look at the Terra crash, South Korean prosecutors’ investigation, Do Kwon, and the possibility of fraud, offering readers an in-depth analysis of the situation.

Terra Crash & Do Kwon

Terra is a cryptocurrency platform created by Do Kwon in 2018 with the aim of reducing transaction costs and increasing scalability. However, the platform suffered a massive collapse in November 2021, causing its value to drop by almost 90%. The reason for the collapse was due to the drop in the value of UST, Terra’s native stablecoin, losing more than 80% of its value. Unfortunately, this event led to many investors experiencing significant losses.

Investigation by South Korean Prosecutors

The reports about Do Kwon’s money transfer to Kim&Chang came to light during the ongoing investigation by South Korean prosecutors into the Terra crash. According to the prosecutors, the remittance of such a large amount of money to a law firm could indicate that Do Kwon was aware of the impending crash and made legal preparations, which could serve as strong evidence in the case of suspected fraud. Prosecutors have also traced transactions associated with the transfer of funds to Kim&Chang to better understand its legality.

Do Kwon’s Response

Do Kwon has vehemently denied the allegations of fraud and has come forward to offer his defense. In his official statement, he maintained that he is innocent and has no insider knowledge regarding the Terra crash. He claimed that the personal transaction with Kim&Chang was for unrelated matters and is falsely claiming legal evidence.

The Possibility of Fraud

The significant transfer of funds by Do Kwon to Kim&Chang at a time that closely coincides with the Terra crash raises some red flags. It is evident that the South Korean prosecutors are taking their investigation seriously. They are looking into the possibility of fraud by Do Kwon and believe that he could have had prior knowledge of the Terra crash. Fraudulent behavior, such as insider trading and market manipulation, in the crypto industry can be difficult to detect, necessitating more thorough investigations.

Conclusion

The ongoing investigation by South Korean prosecutors into the Terra crash and Do Kwon’s alleged fraudulent activity raises many questions. The significant transfer of funds by Do Kwon shortly before the collapse of the platform is being investigated, and its legality is being assessed. This may be strong evidence to support claims of fraudulent activity by Do Kwon. However, it is essential to keep in mind that Do Kwon is innocent until proven guilty. This incident is a reminder of how important it is for the government to investigate any suspicious activity in the crypto industry and bring those responsible to justice.

FAQs

1. What is the Terra crash?
The Terra crash refers to the significant drop in value suffered by the cryptocurrency platform in November 2021, leading to an 80% drop in the value of its native stablecoin, UST.
2. What is the South Korean prosecutor’s investigation about?
South Korean prosecutors are investigating Do Kwon, the founder of Terra, following the large transfer of funds to law firm Kim&Chang, indicating that he may have known about the impending collapse of Terra and made legal preparations.
3. What are the possible implications of the South Korean prosecutor’s investigation?
The South Korean prosecutor’s investigation into the Terra crash and Do Kwon’s activities could lead to charges of fraud, insider trading, or market manipulation. Additionally, this incident is a reminder to investigate any suspicious activity in the crypto industry and hold those responsible accountable.

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