- South Korean authorities have reportedly confiscated assets worth hundreds of millions of dollars that belong to former representatives of Terraform Labs
- Among those impacted is co-founder Daniel Shin, who is wanted by police
- Property and other assets are among the seized assets
South Korean authorities have reportedly confiscated assets worth hundreds of millions of dollars that belong to former representatives of Terraform Labs. The action is aimed at preventing suspects in the case against the failed blockchain company from potentially selling off properties acquired through illegal means. According to national broadcaster KBS, prosecutors in South Korea have so far established control over 210 billion won (nearly $160 million) in assets owned by employees and executives of Terraform Labs as the squeeze is further applied to all those involved in last year’s Terra UST collapse.
Daniel Shin Among Those Impacted
The seizure, which was carried out by the financial and securities crime joint investigation team of the Seoul Southern District Prosecutor’s Office, reportedly involved mostly real estate property and was conducted to prevent eight individuals from disposing of assets that are suspected to have been obtained through illegitimate means.
One of the individuals involved is Shin Hyun-seung, also known as Daniel Shin, a co-founder of Terraform Labs accused of purchasing some of the Terra project’s LUNA tokens before they were officially issued and selling them at their peak price without informing investors about the associated risks. This allegedly earned him an unfair profit of approximately 140 billion won ($107 million).
In addition to this, Shin is alleged to have used customer information and funds from Chai Corp., a fintech firm he later founded, to promote LUNA. As a result, he is facing multiple charges of fraud and violations of capital markets and financial laws in South Korea.
Last November, Shin’s home in a neighborhood of the South Korean capital of Seoul was seized by prosecutors, since when around 100 billion won worth of his property has been frozen. Despite the charges against him, a Seoul court rejected the prosecution’s second request for his pre-trial detention last week.
$117.5 Million Already Being Held
South Korean investigators allege that Shin earned a total of over 154 billion won in gains while working with Terra and are now seeking to track down his hidden assets and seize them. The other seven employees are accused of earning unfair profits amounting to 169 billion won ($117.5 million), 114 billion of which has already been collected and preserved, as detailed in the KBS report.
Shin and his colleagues are accused of planning Terra’s business in a way that enabled them to acquire pre-issued LUNA, which they then sold when the price increased after launch, while Shin himself is wanted by police regarding his part in the affair.