South Korea has blocked assets related to Terra
2022.12.20 06:37
South Korea has blocked assets related to Terra
Budrigannews.com – Authorities in South Korea continue to investigate and freeze the funds of Terra participants more than six months after the ecosystem’s collapse.
Subsequent to holding onto 140 billion won ($108 million) from Land prime supporter Shin Hyun-Seong in November, the Seoul Southern Region Court has as of late governed to seize more resources connected with Land.
The Korea Economic Daily reported on December 20 that a South Korean court has ordered the assets of the former and current CEOs of Kernel Labs, an affiliate of Terraform Labs, to be frozen for 92 million won ($120 million).
Kernel Labs is a blockchain consulting company that was established in 2018 and focuses on decentralized applications and blockchain payment systems. Kernel Labs and Terraform Labs are thought to be inseparable due to the fact that CEO Kim Hyun-joong reportedly held the position of vice president of engineering at Terraform Labs previously. Some sources claim that employees of Kernel Labs also worked at the Terraform Labs office in South Korea.
The latest report states that the Seoul Southern District Court has granted the prosecution’s request to seize the property of seven individuals who were involved in making enormous profits by selling pre-issued Terra (LUNA) tokens.
Bit Labs Chief Kim is one of the people engaged with the case, supposedly holding the biggest sum in unlawful returns from Land. Kim’s illegal gains were estimated by the prosecution to be at least 79 billion won (61 million dollars). Another former CEO of Kernel Labs was found to have received 31 million won (roughly 41 billion won) in illegal proceeds from Terra, according to the prosecution.
In 2021, Kim is said to have bought a lot of real estate in South Korea. He paid $35 million ($27 million) for a building in Gangnam-gu, Seoul’s most expensive neighborhood, in November. He also purchased a residence in Seongdong-gu in June for approximately 7 million won.
The news comes as authorities around the world keep looking for Do Kwon, the controversial CEO and founder of Terraform Labs. After leaving Singapore a few months ago, authorities in South Korea believe that Kwon was hiding in Serbia as of the middle of December.
More South Korean Busan Ban Crypto Exchanges
In 2022, the demise of Terra has emerged as one of the most significant contagions on the cryptocurrency market, as previously reported. Before losing its dollar peg in May, TerraUSD Classic (USTC), Terra’s algorithmic stablecoin, was one of the top ten cryptocurrencies. This caused a domino effect on crypto markets, resulting in massive liquidations and uncertainty that ultimately hurt the crypto lending industry.
