2 mins read

Korea Seizes $150M in Terra Case, Prosecution Freezes Assets

• Korean authorities have seized over $150 million from people tied to Terraform Labs who made unfair gains.
• The prosecution in Seoul’s Southern District is investigating property ownership status and plan to recover proceeds of crime and damages.
• Do Kwon, the co-founder of Terraform labs, has also been arrested and faces up to 5 years imprisonment if found guilty of the charges.

Korea Seizes $150m as Compensation in Terra Case

Investigation into Property Ownership Status

The prosecution in Seoul’s Southern District have seized approximately KRW 210 billion ($151 million) from people associated with Terraform labs for making unfair gains. Furthermore, the prosecution is still investigating the property ownership status of suspects and plans to recover proceeds of crime and damage by carrying out collection preservation for confirmed properties in the future.

Unfair Gains Made by Co-Founder

It is suspected that co-founder Shin Hyun-Seong made around KRW 140 billion worth of unfair gains which increased by KRW 10 billion due to further value gains. It is believed that he held some cryptos before and after the start of business, resulting in insider trading. Additionally, it is reported that seven other employees alike made a total gain of KRW 169 billion with KRW 114 billion being seized so far; prosecutors are working on recovering KRW 79.1 billion and KRW 40.9 billion which are considered criminal proceeds from Labs Kim Mo and another executive respectively.

Properties Seized

The assets were seized to prevent suspects from selling them; lands, houses connected with these individuals were also seized last November including CEO shin’s home along with freezing around 100 billion won at that time too.

Do Kwon’s Case

Do Kwon was recently arrested for alleged charges against him which could lead up to five years imprisonment if found guilty after trial; he had registered a Serbian company before his arrest as a fugitive too which Singaporean authorities are currently investigating as well.