South Korea seizes $150 million in assets of former Terraform employees
Authorities in South Korea have seized $150 million worth of property from eight former employees of Terraform Labs.
Authorities argue that the damage from the illegal activities of the former managers and creators of the crypto project is at least that amount, so the property of the suspects was seized during the investigation
The Financial Crimes Investigation Unit of the Seoul South District Prosecutor's Office seized property of former Terraform Labs employees worth 200 billion won ($153.6 million), local newspaper KBS News reported.
According to the South Korean law enforcement officials, the total damages caused by financial crimes suspected of the Terraform Labs creators amounts to at least 200 million won, the report said. Authorities have seized the property of eight former Terraform employees for that amount, including real estate. This will prevent the suspects from disposing of the property while they are under investigation.
Among those whose assets were seized is the company's co-founder, Daniel Shin. South Korean prosecutors suspect him of making about $105 million in illicit profits from the sale of LUNA tokens and have already twice asked the court for a warrant for his arrest. Both times, the court refused, citing the vagueness of the charges and the fact that Shin is unlikely to destroy any evidence or flee.
Sheen faces charges of fraud, breach of duty and capital markets laws. He denies all of the charges and claims that when he left Terraform Labs in 2020, he was no longer involved in its operations.
Do Kwon, the former head of Terraform Labs, was arrested in late March in Montenegro while trying to fly to Dubai with fake documents. He is now in a local prison awaiting trial on a document forgery case. The South Korean authorities have already requested his extradition, but he will first have to serve his sentence in Montenegro if the local court finds him guilty.