Do Kwon lawyers up as Terra-Luna investigations continue

A screenshot of Do Kwon in an interview with Coinage [SCREEN CAPTURE]

Do Kwon has hired an attorney as the prosecution continues its investigation into a pair of coins he created.

Kwon recently submitted a document to the Seoul Southern District Prosecutors Office disclosing his appointment of an attorney, according to local media reports, citing the legal sources, on Wednesday.

The prosecution is investigating Terraform Labs and co-founders Kwon and Daniel Shin following the $40 billion meltdown of TerraUSD and Luna in May. The collapse destabilized the crypto markets and was blamed for general market instability in the spring.

Kwon said in an interview last month that he had at that point no contact with the prosecutors.

"We've never been in touch with the investigators," Kwon said. "They've never charged us with anything. They haven't reached out to us at all."

"In terms of dealing with due process, it's not a question of how you are prepared to face, it's a question of how you are going to face them," he added.

Kwon was still in Singapore when the interview took place.

Prosecutors in Korea raided the homes of Shin and former employees of the company, offices of crypto exchanges, like Upbit and Bithumb, and related firms, including Kernel Labs, a blockchain consultancy firm.

The prosecution prohibited Shin and certain former and current employees of Terraform Labs from leaving Korea. A "notification upon arrival" order has been issued for Kwon, meaning that investigators will be told when he enters the country.

Terra sent money disguised as service charges to Kernel Labs, laundering more than $4 million, according to a report from Crypto News.

BY JIN MIN-JI, HA JUN-HO [jin.minji@joongang.co.kr]