The founder of Terraform Labs, Do Kwon, reportedly retained a law firm in South Korea before the wipeout in TerraUSD’s value, according to a Bloomberg report.

See related article: Local prosecutors say Terra-Luna’s Do Kwon has no identifiable assets in South Korea

Fast facts

  • The retention of a law firm by Do Kwon suggests that legal action could be a possibility in response to the wipeout.
  • Do Kwon reportedly sent nine billion won (US$7 million) to law firm Kim & Chang before the collapse of the Terra ecosystem in May 2022.
  • South Korean regulators have reportedly launched an investigation into the incident and are seeking information from Terraform Labs and other parties involved.
  • Terraform Labs is a blockchain company that issues stablecoins, including TerraUSD, which is pegged to the US dollar.
  • The incident has raised concerns about the stability of stablecoins and the potential risks of their underlying mechanisms.
  • The incident highlights the need for greater regulatory oversight of the crypto industry and the importance of transparency in stablecoin operations.

See related article: South Korean prosecutors to freeze US$5.36 million of Do Kwon’s assets, some in Switzerland