South Korean court freezes $92M in assets related to Terra tokens

More than six months after the collapse of the Terra ecosystem, South Korean authorities proceed to examine and freeze the funds of individuals concerned in Terra.

After seizing 140 billion gained ($108 million) from Terra co-founder Shin Hyun-Seong in November, the Seoul Southern District Court has just lately dominated to confiscate extra assets related to Terra.

The South Korean court has ordered to freeze of 120 billion gained ($92 million) in assets of former and incumbent CEOs of Terraform Labs’ affiliate agency Kernel Labs, The Korea Economic Daily reported on Dec. 20.

Founded in 2018, Kernel Labs is a blockchain consultancy agency targeted on decentralized functions and blockchain cost techniques. Kernel Labs is believed to have shut ties with Terraform Labs, as CEO Kim Hyun-joong as soon as reportedly served as vp of engineering at Terraform Labs. According to some sources, Kernel Labs workers additionally labored on the South Korean workplace of Terraform Labs.

According to the brand new report, the Seoul Southern District Court has accepted the prosecution’s request to seize property of seven folks concerned in promoting pre-issued Terra (LUNA) tokens to make astronomical income.

Kernel Labs CEO Kim is among the individuals concerned in the case, reportedly holding the most important quantity in unlawful proceeds from Terra. Prosecutors estimated Kim’s unlawful positive aspects to quantity to at the least 79 billion gained ($61 million). Prosecutors additionally discovered that one other Kernel Labs government, a former CEO, acquired about 41 billion gained ($31 million) in unlawful proceeds from Terra.

Kim reportedly made some main actual property purchases in South Korea in 2021. In November, he purchased a constructing in Gangnam-gu, the most costly space in Seoul, for 35 billion gained ($27 million). In June, he additionally bought an condominium in Seongdong-gu for about 9 billion gained ($7 million).

Related: South Korean decide dismisses arrest warrants for Terra co-founder Do Kwon’s former associates

The information comes amid international authorities persevering with to seek for Terraform Labs’ controversial founder and CEO Do Kwon. According to the most recent stories, South Korean authorities consider that Kwon was hiding in Serbia as of mid-December after leaving Singapore a couple of months in the past.

As beforehand reported, the collapse of Terra has emerged as one of many greatest contagions on the cryptocurrency market in 2022. Terra’s algorithmic stablecoin, TerraUSD Classic (USTC), was one in all high 10 cryptocurrencies earlier than it misplaced its greenback peg in May. The occasion triggered a domino impact on crypto markets, inflicting huge liquidations and uncertainty, which subsequently undermined the crypto lending business.