South Korea Freezes $104 Million in Assets Belonging to Terra Co-Founder – South Korean Authorities Freeze the Assets of Terraform Labs’ Co-Founder. Thursday, the Seoul Southern District Court allegedly granted local prosecutors’ plea to freeze approximately 104 million dollars worth of assets belonging to Terraform Labs co-founder Shin Hyun-seung, also known as Daniel Shin. The pre-indictment freezing order is a preventative measure designed to prevent a suspect from disposing of illegal proceeds before trial.
Prosecutors accuse the co-founder of Terra of obtaining “unfair” profits of approximately 140 billion Korean won by selling pre-issued cryptocurrency LUNA, now known as luna classic (LUNC), without providing investors with adequate notice. Shin reportedly told prosecutors on Thursday that he did not sell the cryptocurrency at its peak price prior to its collapse. Forkast cited Hwang Suk-jin, professor of information security at Dongguk University and regular speaker on crypto policy at the South Korean National Assembly, saying: “It’s a problem with pre-mining. It’s because they did not make proper disclosure in issuing the tokens.”
For instance, if investors “thought 1,000 tokens have been issued and in fact 10,000 have been issued, investors inevitably suffer losses.” Shin and Chai corp., a local payments technology company he created, are currently under investigation for allegedly utilizing client information without permission in order to develop Chai’s Terra payment services. According to reports, the payments organization was raided by local police last Thursday.
Since May, South Korean authorities have been investigating the collapse of LUNA and have filed an arrest warrant for Kwon Do-Hyung, also known as Do Kwon, who co-founded Terraform Labs with Shin. Additionally, Interpol has issued a Red Notice for him. Last month, South Korean authorities said that they have frozen Kwon’s cryptocurrency assets. However, Kwon denied ownership of the frozen coins.
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