South Korean authorities have reportedly seized assets worth billions of won owned by the former head of Terraform Labs. The measure is intended to prevent suspects in the case with the failed blockchain company from selling assets that may have been obtained with the proceeds of crime.
South Korean law enforcement moves to seize terraform-related properties, reports
South Korean prosecutors have so far established control over 210 billion won ($160 million) in assets owned by employees and executives of Terraform Labs, the company behind the collapsed cryptocurrency luna and stablecoin terrausd, state broadcaster KBS reported.
The property, mostly real estate, was seized by a joint financial and securities crimes investigation team from the Seoul Southern District Public Prosecutors Office. The move is aimed at preventing the eight from disposing of assets that authorities suspect may have been acquired using improper benefits.
Among them was Shin Hyun-seung (Daniel Shin), co-founder of Terraform Labs, who improperly acquired approximately 140 billion won by purchasing luna before its official issuance and then selling it at peak prices, while He is also accused of failing to inform investors about the risks associated with the coin.
Shin also allegedly used customer information and funds from a fintech company he later founded, Chai Corp. to promote luna. He is currently facing multiple charges of fraud and violations of capital markets and financial laws in South Korea.
Last November, prosecutors seized Shin’s home in a neighborhood in the South Korean capital and have since frozen his assets worth about 100 billion won. Despite these charges, a Seoul court last week rejected a second request for his pretrial detention.
South Korean investigators allege that Shin received a total of more than 154 billion won in profits during his time at Terra. They also intend to trace and seize his hidden assets. The unjustified profits of seven other employees are estimated to reach 169 billion won, of which 114 billion won has been “collected and preserved,” the KBS report detailed.
Shin and others are accused of masterminding the Terra business in such a way that they could acquire pre-issue lunas that were sold when prices rose after launch. Kwon Do-Hyung, another co-founder of Terraform, was arrested in Montenegro in March along with the company’s chief financial officer, Han Chang Jun.
Kwon will likely face trial in the small Balkan country for attempting to leave for Dubai on a forged Costa Rican passport. Both countries are seeking his extradition.
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