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New Details of the Investigation Against Do Kwon

After the arrest of Do Kwon in Montenegro, an active investigation was launched against him and other Terra employees. Let's look at a few new details.

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$7 Billion to lawyers before Terra collapse

South Korean news agency KBS reported on April 13 that the Prosecutor's Office found several transfers worth 9 billion won, which roughly equals $7 billion, from Terraform Labs to Korea's largest law firm, Kim & Chang, before the collapse of the Terra ecosystem.

In this regard, the prosecutor's office assumed that Do Kwon knew in advance about the collapse of the ecosystem and was preparing for litigation. This fact confirms deliberate fraud on the part of Terra employees.

"The fact that they sent a large amount of money to a large law firm before the collapse can be seen as a situation in which they are ready for legal risks, such as investigating charges, " - said the lawyer.

KBS also reports that law enforcement agencies may charge Do Kwon with embezzlement of funds. This will happen if the source of the funds transferred to the law firm was the assets of Terra clients.

Thus, the fact of transferring money from Terraform Labs by a lawyer can become not only another proof of deliberate fraud, but also a reason for new accusations.

Montenegro is the first country where Kwon will be convicted

As we could Observe earlier, there is an acute question about which country Kwon will serve his sentence in. As you remember, several countries applied for the co-founder's extradition at once. But according to the law, firstly, the former employees of Terra must be punished on the territory of the country where they were detained, in case of charges by the authorities of Montenegro.

It is now clear for sure that first Do Kwon and his associate Han Chang-jun will be convicted of using forged documents on the territory of Montenegro. As reported by the Korean news agency Block Media, on April 20 it became known that the Podgorica Prosecutor's office had issued charges of using forged legal documents and requested an extension of the arrest to Terra employees.

“After the decision on the extension of detention by the court, the public will be informed about all available information regarding this case,”- said  Maja Kosovic, a spokesperson for the court.

It can be assumed that the extradition of Kwon to South Korea or the US will not happen soon.

Serbian police confiscate property of Han Chang-jun

While the Podgorica Prosecutor's Office is pressing charges against Terra employees, the Serbian police have seized their property.

The DL News news agency reported that the apartment in Belgrade where Do Kwon and Han were hiding was arrested by local police. The building is located in an elite area of the city. The value of the property is estimated at $2.2 million.

The building where Han's apartment is located in Belgrade.
The building where Han's apartment is located in Belgrade. Source: DL News

According to the documents, the apartment belongs to Kwon's accomplice, Han, who was arrested together with Kwon in Montenegro.

Documents confirming the Han's property.
Documents confirming the Han's property. Source: DL News

It is very ironic that the apartment of the fugitives was located in a neighboring house with the apartment of the Belgrade Police Chief and a six-minute drive from the Embassy of South Korea.

As we wrote earlier, the South Korean prosecutor's office began arresting the real estate of Terra employees, but as it turned out, Do Kwon has no property that could be arrested in Korea.

All this news flow proves once again that the investigation against Kwon is actively being conducted in different countries. We will continue our Observations of this court case and inform you about the news!