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

More than six months aft the illness of the Terra ecosystem, South Korean authorities proceed to analyse and frost the funds of persons progressive successful Terra.

After seizing 140 cardinal won ($108 million) from Terra co-founder Shin Hyun-Seong successful November, the Seoul Southern District Court has precocious ruled to confiscate much assets related to Terra.

The South Korean tribunal has ordered to frost of 120 cardinal won ($92 million) successful assets of erstwhile and incumbent CEOs of Terraform Labs’ affiliate steadfast Kernel Labs, The Korea Economic Daily reported connected Dec. 20.

Founded successful 2018, Kernel Labs is simply a blockchain consultancy steadfast focused connected decentralized applications and blockchain outgo systems. Kernel Labs is believed to person adjacent ties with Terraform Labs, arsenic CEO Kim Hyun-joong erstwhile reportedly served arsenic vice president of engineering astatine Terraform Labs. According to immoderate sources, Kernel Labs employees besides worked astatine the South Korean bureau of Terraform Labs.

According to the caller report, the Seoul Southern District Court has accepted the prosecution's petition to prehend spot of 7 radical progressive successful selling pre-issued Terra (LUNA) tokens to marque astronomical profits.

Kernel Labs CEO Kim is 1 of the persons progressive successful the case, reportedly holding the largest magnitude successful amerciable proceeds from Terra. Prosecutors estimated Kim’s amerciable gains to magnitude to astatine slightest 79 cardinal won ($61 million). Prosecutors besides recovered that different Kernel Labs executive, a erstwhile CEO, received astir 41 cardinal won ($31 million) successful amerciable proceeds from Terra.

Kim reportedly made immoderate large existent property purchases successful South Korea successful 2021. In November, helium bought a gathering successful Gangnam-gu, the astir costly country successful Seoul, for 35 cardinal won ($27 million). In June, helium besides purchased an flat successful Seongdong-gu for astir 9 cardinal won ($7 million).

Related: South Korean justice dismisses apprehension warrants for Terra co-founder Do Kwon’s erstwhile associates

The quality comes amid planetary authorities continuing to hunt for Terraform Labs' arguable laminitis and CEO Do Kwon. According to the latest reports, South Korean authorities judge that Kwon was hiding successful Serbia arsenic of mid-December aft leaving Singapore a fewer months ago.

As antecedently reported, the illness of Terra has emerged arsenic 1 of the biggest contagions connected the cryptocurrency marketplace successful 2022. Terra’s algorithmic stablecoin, TerraUSD Classic (USTC), was 1 of apical 10 cryptocurrencies earlier it lost its dollar peg successful May. The lawsuit triggered a domino effect connected crypto markets, causing monolithic liquidations and uncertainty, which subsequently undermined the crypto lending industry.