South Korean law enforcement has taken control of property worth 210 billion won (nearly $160 million) that was owned by former workers of Terraform Labs. This is an effort to stop people connected to the now-defunct blockchain company from disposing of assets they allegedly obtained illegally.
Seizure of Real Estate Linked to Terraform, According to Report
National broadcaster KBS has reported that the Seoul Southern District Prosecutor’s Office has initiated a financial and securities crime joint investigation team to seize assets related to Terraform Labs, the firm behind cryptocurrency Luna and stablecoin TerraUSD. The majority of the assets are real estate.
The objective is to prevent eight persons of interest from being able to get rid of property they are suspected of having acquired with the proceeds of their criminal activities. Among them is co-founder Shin Hyun-seung, also known as Daniel Shin. He is accused of making 140 billion won by buying Luna tokens before the public launch and then selling them at a higher price without informing investors of the risks.
Shin is allegedly accused of using customer data and funds from his later-founded fintech venture Chai Corp. to promote Luna. He is facing multiple fraud charges and violations of financial and capital markets laws in South Korea. Last November, the prosecutors already seized Shin’s house in Seoul.
The investigators believe he earned more than 154 billion won through Terraform. They are also trying to track down any assets he may have hidden. The unfair profits of seven other employees are said to total 169 billion won, 114 billion of which have already been “collected and preserved.”
Shin is also accused of using the Terraform business to help other people buy pre-issued Luna tokens and sell them for a profit when the price went up following the public launch. Terraform’s other co-founder, Do Kwon (Kwon Do-Hyung) was arrested in Montenegro in March alongside Han Chang-joon, the company’s chief financial officer. He is expected to be extradited to South Korea or the U.S. to face charges.
The court rejected a motion to detain Shin prior to trial last week. Other charges may be brought against him and other suspects.
Do you think South Korean authorities will be able to seize all of Terraform Labs’ former employees’ assets? Share your thoughts in the comments section below.
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