Korea freezes $104 million in assets belonging to Terra co-founders

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2022-11-21 20:16:44

South Korean prosecutors are said to have received a court order to freeze assets worth about $104 million belonging to Terraform Labs co-founder Daniel Shin. Authorities allege that he illegally profited from selling the LUNA cryptocurrency at a high price before the token crashed. Shin has denied the allegation.

Weld to freeze assets of Terraform Labs co-founder

On Thursday (November 17), the Seoul Southern District Court is said to have approved a request by local prosecutors to freeze about 140 billion won (approximately $104 million) in assets belonging to people. Terraform Labs co-founder Shin Hyun-seung, aka Daniel Shin. A pre-trial freeze is a precautionary measure to prevent suspects from destroying criminal property before trial.

Chai Group founder Daniel Shin (Shin Hyun-seung) co-founded Terraform Labs with Do Kwon
Chai Group founder Daniel Shin (Shin Hyun-seung) co-founded Terraform Labs with Do Kwon

Prosecutors have accused the Terra co-founder of making an “unfair” profit of around 140 billion won by selling the pre-released LUNA cryptocurrency, now known as Luna Classic (LUNC), which does not disclose accurate information to investors. However, Shin reported to prosecutors on Thursday that he did not sell the cryptocurrency at its peak price before the token crash.

Hwang Suk-jin, a professor of information security at Dongguk University and a regular speaker on cryptocurrency policy at the National Assembly of Korea, was quoted by Forkast as saying:
That’s a problem with Pre-mining. The reason is because they did not disclose the correct information when issuing the token.

The professor added that, if investors “think that 1,000 tokens have been issued and in fact 10,000 have been issued, investors will inevitably lose.”

Shin and Chai corp., a local payment technology company founded by Shin, is currently under investigation for allegedly using customer information without consent in launching the Chai payment service . The payment company was investigated by local authorities on Thursday.

South Korean prosecutors have also been investigating the demise of LUNA since May and issued an arrest warrant for Kwon Do-Hyung, aka Do Kwon, who co-founded Terraform Labs with Shin. Interpol has also issued a Red Notice for Kwon. Last month, South Korean authorities said they had frozen crypto assets belonging to Do Kwon. However, he denied the frozen money was his.

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