Terra co-founder Do Kwon is said to have engaged a South Korean lawyer, although the managing director of Terraform Labs had only a few days earlier claimed that the country’s law enforcement authorities have not yet brought charges against him.
As can be seen from a South Korean media report, the Prosecutor’s Office of the Southern District of Seoul has received a corresponding announcement about the appointment of a lawyer for Kwon. The prosecutor’s office is investigating the case of the failed blockchain project Terra (LUNA).
Although Kwon states that no charges have been filed against him so far, the investigating authorities are said to have already initiated 15 house searches at affiliated companies at the end of July, including seven crypto exchanges associated with the failed project.
The investigators are said to have informed Kwon, who is staying in Singapore, while important employees of Terra have been banned from leaving South Korea.
A short time after the $ 40 billion crypto project Terra had failed in May, South Korea had opened an investigation against the local company. In addition, the first steps have already been taken to prevent such cases in the future.
As part of the investigation, charges were filed against Terra operator Terraform Labs in June, with allegations of tax evasion and market manipulation. In the course of this, a ban on leaving the company was imposed on employees of the company.
The collapse of Terra, the associated cryptocurrency LUNA and the associated stablecoin TerraUSD (UST) has triggered a veritable domino effect in the crypto industry, which has not only put massive pressure on the Bitcoin price, but has also driven several companies to the brink of bankruptcy. The aftermath is still ongoing.
