Do Kwon boosts his legal team as Terraform Labs investigation continues

Do Kwon, the CEO of Terra, is apparently assembling his legal defense team in South Korea as the Terraform Labs investigations continue. Kwon recently submitted a letter of employment to the Seoul Southern District Prosecutors’ Office, according to a local report.

According to recent claims made by the Terra developer, South Korean authorities have not yet contacted him or informed him of any accusations. Authorities reportedly searched and confiscated assets from 15 businesses connected to the defunct Terra, though. Prosecutors reportedly contacted Kwon, who was still in Singapore, and imposed a travel ban on core members of the firm from the country.

In a recent interview that many had assumed was a PR stunt, Do Kwon finally broke his silence. In the interview with Coinage’s Zack Guzman, Kwon asserted that Terra’s collapse may have been caused by inside information.

The native of South Korea alleged that Terraform Labs staff had access to crucial information that could have been used against the company. The relevant data relates to the fund transfers that took place between trading pools and resulted in the imbalance that triggered the crash. Kwon claims that although the transaction was meant to be confidential, a “mole” made it public knowledge. He stated:

“So if you’re asking me whether there was a mole at Terraform Labs, that’s probably ‘yes.’ Whether somebody tried to take advantage of that particular opportunity, I would say that the answer is, ‘Yes.’“

Despite allegations that Terra was a Ponzi scheme, Kwon pointed out that the project’s initial investors lost the most money. The 31-year-old is also said to have lost a loved one as a result of Terra’s crash.

Do Kwon finally acknowledges his mistake

After Terra’s demise, Do Kwon continued to believe in Terra, but he finally confessed responsibility for any systemic flaws. The crypto creator acknowledged that he might have been too confident in Terra’s success without taking the risk of failure into account.

In May, South Korean officials opened an investigation on the Terra ecosystem’s demise, and a committee was later established to prevent another similar circumstance. Due to Terra’s downfall, users and investors lost around $40 billion, and several reportedly committed suicide.