News

Court seizes $92 million in Terra token-related assets

Published

2 years ago

December 20, 2022

While South Korean officials continue to investigate the Terra ecosystem’s collapse six months ago, they have frozen the funds of those involved. The Seoul Southern District Court has decided to further freeze Terra-related assets after seizing 140 billion won ($108 million) from Terra co-founder Shin Hyun-Seong in November 2022.

According to The Korea Economic Daily, on December 20, a South Korean court ordered the assets of the current and past CEOs of Terraform Labs’ affiliate company Kernel Labs to be frozen at 120 billion won ($92 million).

The Seoul Southern District Court granted the prosecution’s request to seize the property of the seven executives, along with Kwon Do-Hyung, CEO of Terraform Labs, and Shin Hyu, CEO of Chai Pay Holding Company, accused of selling pre-issued Terra tokens for enormous profits.

One of the parties in the case is Shin Hyu, Kernel Labs CEO Kim, who is said to be in possession of the largest amount of Terra’s unlawful gains. Kim’s illicit gains were worth at least 79 billion won ($61 million), according to the prosecution.

Additionally, prosecutors discovered that a former CEO of Kernel Labs obtained around 41 billion won ($31 million) in ill-gotten gains from Terra, Shin Hyu-seong, the CEO of Chai Pay Holding Company, and Kwon Do-Hyung, the CEO of Terraform Labs.

In November 2021, Kim reportedly made a number of significant real estate purchases in South Korea. He paid 35 billion won ($27 million) for a building in Gangnam-gu, the best and most expensive district of Seoul. He also paid almost 9 billion won ($7 million) for an apartment in Seongdong-gu in June.

The news comes as international law enforcement agencies continue to look for Do Kwon, the contentious founder and CEO of Terraform Labs. According to the most recent sources, Kwon is thought to have fled Singapore a few months ago and was hiding out in Serbia as of mid-december, according to South Korean police.