South Korea seizes $104M from Terra co-founder suspecting unfair profits

While crypto change FTX stole the limelight from different fallen ecosystems, South Korean authorities proceed their efforts to deliver closure to the victims of the yr’s first crypto crash — Terraform Labs. Nearly six months after the Terra (LUNA) blockchain was formally halted, South Korean authorities froze roughly $104.4 million (140 billion received) from co-founder Shin Hyun-seong primarily based on suspicion of unfair profits.

The determination to freeze Shin’s asset value over $104 million was authorised by the Seoul Southern District Court, which was primarily based on a request from the prosecutors. The declare associated to Shin’s involvement in promoting pre-issued Terra (LUNA) tokens to unwary buyers.

Based on suspicion of profiting from unwarranted LUNA gross sales, the district court docket froze the allegedly stolen funds till additional investigations are underway, reported native information media YTN.

“Reports that CEO Shin Hyun-seong bought Luna at a excessive level and realized profits or that he made profits by different unlawful strategies should not true,” Cointelegraph beforehand quoted Shin’s lawyer.

The preindictment preservation of the funds is a method of stopping dangerous actors from disposing of stolen funds and inflicting extra monetary injury or losses for the buyers.

Shin is at present being investigated by South Korean authorities on two fees — making unfair profits from issuing in-house tokens LUNA and TerraUSD (UST) and leaking buyer transaction data of Chai — a Korean cost app linked to Terra — to Terraform Labs.

On November 14, the South Korean prosecutors requested the accused co-founder seem in court docket as a part of an investigation into the agency’s collapse.

Related: Terra Labs, Luna Guard fee audit to defend towards allegations of misusing funds

In the primary week of November, the prosecutors accused Terra co-founder Do Kwon of manipulating Terra’s worth.

“It’s extremely disappointing to see the Korean prosecutors proceed to attempt to contort the Capital Markets Act to suit their agenda and push baseless claims. Prior judicial choices and statements by the Korean monetary authorities, together with the FSC, set up that cryptocurrency tokens should not funding contract securities,” stated Terraform Labs spokesperson in a written assertion to Cointelegraph.