Korean Court Has Frozen $93 Million In Assets Of Terra’s Subsidiary
- A Korean court has frozen $93 million in assets of Terra’s subsidiary, Kernel Labs.
- Huge amount of money made by selling pre-released Luna.
- 7 individuals are accused of selling Luna before its release to make huge profits.
Today, Korean media reported that a Korean court has frozen the assets worth 120 billion won ($93 million) of the former and current CEOs of Kernel Labs, an affiliate of Terraform Labs, the company that issued the Terra and Luna cryptocurrencies.
Kernel Labs, a subsidiary of Terraform Labs, holds a patent for ‘Method and device for providing stable coin service on a blockchain’, one of Terra and Luna’s core technologies.
As reported by the Sunday newspaper, the Seoul Southern District Court recently accepted the prosecution’s request to collect and preserve the assets of the three original investors in Terra and Luna and four key personnel in technology development. Collection protection is a measure to prevent the suspect from arbitrarily taking advantage of the crime-related benefits that are obtained during the ongoing trial.
The seven people whose assets were frozen due to this prosecution are accused of making huge profits by selling pre-released Luna along with Shin Hyun-seong (Daniel Shin), CEO of Chai Pay Holding Company, and Kwon Do-hyung (Do Kwon), CEO of Terraform Labs. They are also suspected of forcibly issuing cryptocurrencies without informing investors even though they know that the payment business cannot be done with cryptocurrencies like Terra and Luna.
Among the seven people, the one with the largest amount of illicit profits is Mr. Kim Amugae, CEO of Kernel Labs. Prosecutors determined that Kim’s illegal profits amounted to at least 79.1 billion won ($61.6 million).
Prosecutors determined that the former CEO of Kernel Labs, Mr. Choi, received 40.9 billion won ($31.4 million) in illicit profits. Mr. Choi, an early investor in Terra and Luna, was the one who introduced CEO Do-hyung Kwon to CEO Hyun-seong Shin, who was thinking of starting a crypto business. Mr. Kim and Mr. Choi’s total illicit profits amounted to 120 billion won ($93 million).
On November 30, the prosecution requested arrest warrants for the seven people who froze their assets and CEO Shin Hyun-sung. However, the court rejected the arrest warrant on December 3, saying, “The nature of the crime is very serious, but it is difficult to see that an arrest is necessary and meaningful.”
As mentioned in the previous Coincu News article, due to the main suspect, CEO Kwon Do-hyung, continuing to flee abroad, the investigation schedule was interrupted. Currently, he is being discovered hiding in Serbia, Han fquoocs officials also said they are cooperating with the country’s government to expand the investigation.
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