South Korea Seizes $104 Million From Terra Co-Founder On Grounds Of Alleged Ill-Gotten Gains

While other collapsed ecosystems were given more attention by the cryptocurrency exchange FTX, South Korean authorities are still working to provide closure for Terraform Labs, the victims of the year’s first crypto disaster. South Korean authorities froze over $104.4 million (140 billion won) from co-founder Shin Hyun-seong because to allegations of improper gains nearly six months after the Terra blockchain was formally shut down.

The Seoul Southern District Court agreed to the prosecutors’ plea to freeze Shin’s assets, which total more than $104 million. The allegation was Shin’s participation in the sale of pre-issued Terra tokens to naïve investors.

Based on suspicion of profiting from unwarranted LUNA sales, the district court froze the allegedly stolen funds until further investigations are underway, reported local news media YTN.

The preindictment preservation of the funds is a technique to stop criminals from disposing of stolen money and inflicting further losses or financial harm on the investors.

Authorities in South Korea are currently looking into Shin on two counts: generating unauthorized gains from the issuance of the company’s own tokens, LUNA and TerraUSD (UST), and giving Terraform Labs access to customer transaction data through Chai, a Korean payment app connected to Terra.

The suspected co-founder was ordered to appear in court on November 14 as part of an inquiry into the failure of the company by South Korean prosecutors.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join us to keep track of news: https://linktr.ee/coincu

Website: coincu.com

Annie

CoinCu News