South Korean authorities have reportedly seized billions of won worth of assets belonging to former representatives of Terraform Labs. The move should prevent suspects in the failed blockchain startup case from selling property that may have been obtained with criminal proceeds.
South Korean law enforcement moves to seize real estate linked to Terraform, report
Prosecutors in South Korea have so far established control of more than 210 billion won (nearly $160 million) in assets owned by employees and executives of Terraform Labs, the company behind crashed cryptocurrency luna and stablecoin terrausd. , national broadcaster KBS reported.
The property, mostly real estate, has been seized by the joint financial and securities crime investigation team of the Seoul Southern District Prosecutor’s Office. The measure is intended to prevent eight people from disposing of assets that authorities suspect may have been acquired with undue gains.
Among them is Terraform Labs co-founder Shin Hyun-seung, also known as Daniel Shin, who has been accused of wrongfully gaining some 140 billion won by buying moon before it was officially aired and selling it at the maximum price afterwards, without inform. investors about the risks associated with the currency.
Shin also allegedly used customer information and funds from a fintech firm he later found, Chai Corp., to promote luna. He now faces multiple charges of fraud and violations of South Korea’s capital markets and financial laws.
In November last year, prosecutors seized Shin’s home in a suburb of the South Korean capital and have since frozen some 100 billion won of his property. Despite the charges, a Seoul court rejected his second request for pretrial detention last week.
South Korean investigators claim that Shin made a total of more than 154 billion won in profit while working with Terra. They also intend to track down his hidden assets and seize them. The unfair profits of the other seven employees reportedly amount to 169 billion won, 114 billion won of which have been “collected and preserved,” the KBS report details.
Shin and others are accused of masterminding Terra’s business in a way that allowed them to acquire pre-issue luna which they sold when the price increased after launch. Terraform’s other co-founder, Do Kwon (Kwon Do-Hyung) was arrested in Montenegro in March along with Han Chang-joon, the company’s chief financial officer.
Kwon is likely to stand trial in the small Balkan nation for attempting to travel to Dubai on a forged Costa Rican passport, before being handed over to South Korea or the United States to face other charges. Both nations seek his extradition.
Do you expect the South Korean authorities to finally confiscate the assets of former Terraform Labs employees? Share your thoughts on the subject in the comments section below.
image credits: Shutterstock, Pixabay, Wiki Commons, rafapress / Shutterstock.com
Disclaimer: This article is for informational purposes only. It is not a direct offer or a solicitation of an offer to buy or sell, or a recommendation or endorsement of any product, service or company. bitcoin.com does not provide investment, tax, legal or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
