South Korea Freezes $93M Allegedly Belonging to Company Involved in Terra’s Crash (Report)

The South Korean court has reportedly frozen 120 billion won (over $93 million) in assets belonging to executives of blockchain consultancy firm Kernel Labs. 

The entity is speculated to have had a hand in Terra’s collapse earlier this year while its CEO – Kim Hyun-Joong – served as Vice President of Engineering at Terraform Labs. 

The Latest Efforts

According to a local report, the Korean Authorities froze around $93 million owned by bosses of Terraform Labs’ affiliate company – Kernel Labs. 

Some sources revealed that employees of the organization previously worked at the Terraform Labs Korea office, while CEO Kim Hyun-Joong was the Vice President of Engineering of the notorious crypto fintech firm. 

The latest coverage disclosed that the nearly $100 million were frozen from seven people. The Seoul Southern District Court claimed that all those individuals have been involved in selling pre-issued Terra tokens to generate significant profits. 

Prosecutors determined that Hyun-Joong illegal gains amounted to over $61 million. They disclosed that he purchased a building in Seoul for around $27 million last November. He also bought an apartment in the capital for almost $8 million shortly after Terra’s catastrophe. For his part, Choi – Kernel Labs’ former CEO – received around $32 million in illicit profits.

The South Korean authorities recently confiscated more than $100 million worth of assets belonging to Shin Hyun-Seong (Daniel Shin). They claimed the Co-Founder of Terraform Labs violated domestic capital laws and was responsible for the price crash of the tokens.

The Seoul Southern District Prosecutors Office issued an arrest warrant against him several days later, while Shin maintained he had no relation to Terra’s fall as he cut ties with the project in 2020:

“I left (Terraform Labs) two years before the collapse of Terra and Luna and have nothing to do with the collapse.”

What About Do Kwon?

The South Korean authorities froze nearly $40 million in assets tied to Do Kwon – Co-Founder and CEO of Terraform Labs. The relevant agencies previously seized $65 million in bitcoin, presumably belonging to him.

Officials, affected investors, and even Interpol have been trying to detect Kwon’s whereabouts, who escaped his homeland shortly after the incident.

The latest sources disclosed that he might have moved to Serbia, while Singapore, Dubai, Seychelles, and Mauritius were supposedly some of his previous hiding spots.

Kwon vowed to organize an online conference and lift the curtain on his mysterious location but to no avail so far.