South Korean Authorities Seize $92M Assets Linked to Terra Tokens

As investigations continue into the collapse of Terraform Labs, South Korean authorities have now seized assets worth $92 million belonging to officials of Kernel Labs, a subsidiary of Terraform after approval from the Seoul Southern District Court. This is as per a local media report.

According to claims from the prosecution, prior to the collapse of the Terra ecosystem, Kim Hyun-Joong, the CEO of Kernel Labs received about $61 million in unlawful funds from Terra, and another executive of Kernel Labs also pocketed $31 million in unlawful gains.

Interestingly, Kim served as Vice President of Engineering at Terraform Labs before he became CEO of the blockchain consultancy firm. There are also indications that other employees of Kernel Labs operate from the Terra office.

Other Seizures Related to the Terra case

Prior to this recent seizure, the South Korean authorities in a bid to mount pressure on Do Kwon froze $39.4 million in assets belonging to the co-founder. Also, the authorities recently froze $108 million belonging to another co-founder Daniel Shin. Daniel is charged with allegedly gaining illegal profit after storing cryptocurrency that had been pre-issued without the knowledge of the investors.

The authorities have since ordered Daniel’s arrest even though he says he has been cooperative with the investigations adding that he exited the firm two years before its collapse and had nothing to do with the collapse.

Also, the Seoul Southern District Court has approved the request to seize the properties of seven other people accused of selling pre-issued Terra to make illegal gains. Prosecutors have maintained that these seizures will help Terra victims get justice and prevent the accused from disposing of the assets.

Meanwhile, despite concerted efforts by authorities to bring Do Kwon to book, he has continued to evade arrest. According to a recent report, Do Kwon resides in Serbia after he left Singapore as the prosecution believes he is attempting to elude justice by escaping into a foreign country.

However, Kwon has continued to maintain that he is not on the run from any government agency that has shown interest to communicate.