Terraform Labs co-founder Do Kwon has reportedly hired a lawyer from a domestic law firm in South Korea just days after claiming the South Korean authorities are yet to reach out to him or file any charges against him.
According to a local media report, Kwon recently submitted a letter of appointment to an attorney at the Seoul Southern District Prosecutors’ Office, the department that is currently investigating the Terra-LUNA — now renamed Terra Classic (LUNC) collapse.
While Kwon claims no charges were filed against him, prosecutors in South Korea behind the investigation of Terraform Labs reportedly executed a search and seizure in 15 firms in the third week of July. It includes seven crypto exchanges linked to now-defunct Terra’s collapse.
Prosecutors reportedly notified Kwon, who was staying in Singapore and banned the departure of key people.
South Korean authorities began an investigation into the $40 billion Terra ecosystem collapse soon after the ecosystem’s implosion in May. The first action came towards the end of May when the authorities decided to form a new crypto oversight committee to avoid Terra-like incidents in the future. Later, CEO Kwon was sued and accused of fraud and violation of several financial acts.
Lan June, the authorities began a formal investigation into the incident and found Terraform Labs guilty of tax evasion and market manipulation. Prosecutors in the country banned Terraform Lab employees from leaving the country.
The Terra-USD collapse and implosion of a $40 billion ecosystem had a catastrophic impact on the larger ecosystem. The incident later led to a crypto contagion that claimed several crypto lenders and hedge funds.