South Korean Court to seize $104 million worth of assets from Terra co-founder, based on a request from the prosecutors.
While FTX grabbed the spotlight away from other fell ecosystems, South Korean authorities are working to offer closure to the victims of the year’s first crypto crash, Terraform Labs. South Korean authorities froze roughly $104.4 million (140 billion won) from Terra (LUNA) blockchain co-founder Shin Hyun-seong on suspicion of improper profits nearly six months after the Terra (LUNA) blockchain was formally terminated.
The Seoul Southern District Court accepted the decision to freeze Shin’s assets worth more than $104 million, based on a request from the prosecutors. Shin was accused of selling pre-issued Terra LUNA coins to unsuspecting investors.
According to local news outlet YTN, the district court froze the allegedly stolen monies since they are suspected of benefitting from unauthorized LUNA sales.
According to his lawyer, reports that CEO Shin Hyun-seong sold Luna at a high price and profited, or that he profited via other illicit means, are false.
The preservation of funds before an indictment is a method of stopping unscrupulous actors from disposing of stolen cash and creating additional financial damage or losses to investors.
Shin is currently being investigated by South Korean authorities on two counts: generating illegitimate profits from the issuance of in-house tokens LUNA and TerraUSD (UST) and leaking customer transaction information from Chai, a Korean payment app linked to Terra, to Terraform Labs.
South Korean authorities demanded that the alleged co-founder appears in court on November 14 as part of an inquiry into the firm’s demise.
Prosecutors accused Terra co-founder Do Kwon of price manipulation in the first week of November.