Terra faces more legal trouble as authorities seize $160 million in assets
- The Seoul Southern District Prosecutor’s Office has seized approximately $160 million from eight individuals.
- Both the United States and South Korea asked Montenegro to detain Kwon.
As per a recent report by the local South Korean news outlet KBS, the Seoul Southern District Prosecutor’s Office has seized approximately $160 million in assets from eight individuals linked to the collapse of Terraform Labs.
Authorities seized nearly $160 million in property associated with former Terra workers, primarily in the form of real estate. Prosecutors allegedly took possession of houses and properties worth $60 million and $31 million owned by former Vice President Kim Mo and an unnamed executive, respectively.
The seizures are allegedly intended to prevent former Terra employees from disposing of assets. Authorities seized Terraform Labs co-founder Shin “Daniel” Hyun-Song’s home in Seoul in November 2022 but are apparently still investigating other assets allegedly linked to the Terra co-founder.
Terra not out of the woods
Hyun-Song has also been accused of insider trading, which reportedly resulted in an unfair gain of 100 billion won ($76 million). If the allegations of insider trading against Hyun-Song are proven to be true, it implies that even the seizure of his real estate would not be enough to cover the illicit gains, with an additional $11 million unaccounted for.
Before his reported detention in the U.S., no South Korean judge had authorized an arrest warrant for Shin. There has been no word on whether any crypto assets were seized as part of the probe.
A spokesperson for the prosecution team said:
“We are still investigating the property ownership status of the suspects, and we plan to carry out collection preservation for the confirmed property in the future in order to recover the proceeds of crime and recover damages.”
Terra co-founder Do Kwon was taken into custody in Montenegro last month. On 29 March, Montenegrin Justice Minister Marko Kovac stated that the local government had received requests from both the United States and South Korea to detain Kwon.
