Korean Prosecutors Freeze $175M of Terraform Labs Assets
- The prosecution obtained a court’s citation decision in November last year, allowing them to freeze Shin Hyun-seong’s property before the indictment.
- Prosecutors plan to continue freezing the illegal gains acquired by those involved in the fraud.
FatManTerra, a prominent figure in the crypto community, shared on Twitter that Korean prosecutors have frozen $175 million worth of assets belonging to Terraform Labs (TFL) and ex-TFL employees, including $90 million of ill-gotten LUNA cashouts from high-ranking TFL executives. The frozen assets were part of the ongoing investigation on the Terra/Luna crash, as reported by a South Korean news outlet.
According to the report, the prosecution has collected and preserved a total of about 230 billion won (approximately $175 million) in the property of those involved in the case, including Shin Hyun-seong, the Terra co-founder, also known as Daniel Shin.
The Seoul Southern District Prosecutor’s Office’s Financial Securities Crimes Joint Investigation Team obtained a court’s citation decision in November last year, allowing them to freeze Shin’s property before the indictment.
Prosecutors are planning to continue freezing the illegal gains acquired by Shin at 154.1 billion won ($117 million), and the undue gains obtained by TFL-affiliated CEO Kim Mo at 79.1 billion won ($60 million), and former TFL executive A at 40.9 billion won ($31 million). Collection and preservation measures for housing and land are also underway.
The report also stated that ex-CEO of TFL, Kwon Do-hyeong, who was arrested in Montenegro and is believed to have attempted to conceal 95 billion won ($72 million) in virtual assets, has also had his assets frozen by the prosecution.
An official from the prosecution stated: “We have collected and preserved a significant amount of the amount of criminal damage, [and] we can continue the freezing process in the future.”