According to reports, the CEO of Terraform Labs’ subsidiary company Kernel Labs owned the highest amount of unlawful Terra proceeds.
Authorities in South Korea are still looking into the collapse of the Terra ecosystem more than six months after it happened and have frozen the funds of those involved.
Shin Hyun-Seong, a co-founder of Terra, had 140 billion won ($108 million) seized from him in November, and the Seoul Southern District Court has just decided to seize more Terra-related assets.
According to The Korea Economic Daily, on December 20, a South Korean court ordered the assets of the current and past CEOs of Terraform Labs’ affiliate company Kernel Labs to be frozen at 120 billion won ($92 million).
Kernel Labs is a blockchain consulting company that specialises in decentralised applications and blockchain payment networks. It was founded in 2018. Due to CEO Kim Hyun-alleged joong’s prior employment as Terraform Labs’ vice president of engineering, it is thought that Kernel Labs and Terraform Labs have a tight working relationship. Some sources claim that workers from Terraform Labs’ South Korean headquarters also came from Kernel Labs.
According to the latest report, the prosecution’s motion to take the property of seven people involved in selling pre-issued Terra LUNA tokens to generate enormous profits was approved by the Seoul Southern District Court.
One of the parties in the case is Kernel Labs CEO Kim, who is said to be in possession of the highest amount of unauthorized Terra earnings. Kim’s illegal earnings were worth at least 79 billion won ($61 million), according to the prosecution. Additionally, prosecutors discovered that a previous CEO of Kernel Labs earned around 41 billion won ($31 million) in unlawful proceeds from Terra.
In 2021, Kim reportedly made a number of significant real estate purchases in South Korea. In November that same year, he paid 35 billion won ($27 million) for a building in Gangnam-gu, the best and most expensive neighborhood in Seoul. He also paid almost 9 billion won ($7 million) for an apartment in Seongdong-gu in June.
The news comes as international law enforcement agencies continue to look for controversial Terraform Labs founder and CEO Do Kwon. According to South Korean police, the most recent reports indicates that Kwon, who left Singapore a few months ago, is thought to have been hiding in Serbia as of mid-December.
As was previously reported, one of the largest contagion events in the cryptocurrency market in 2022 was the collapse of Terra. Prior to losing its peg to the US dollar in May, TerraUSD Classic (USTC), an algorithmic stablecoin, was among the top 10 cryptocurrencies. The incident set off a chain reaction that devastated the cryptocurrency lending market by triggering enormous liquidations and unpredictability.