South Korean authorities have seized over $100 million in funds belonging to Terraform Labs co-founder Shin Hyun-seong (Daniel Shin).
according to thursday report good by South Korean local publication ytnA South Korean court authorized the confiscation of funds worth 140 billion won ($104 million) belonging to Hyun-seong, which he allegedly sold to LUNA (currently LUNC) at a higher price before its meltdown. had earned
“Pre-prosecution protection is a preliminary measure that prevents arbitrary disposal of criminal proceedings before a suspect is handed over to trial so that damages can be recovered later,” the report said.
South Korean prosecutors have claimed that Hyun-seong violated local capital laws by secretly selling tokens before the project collapsed. However, his lawyer has reportedly denied the claims, stating that the allegations are false.
The lawyer said, “Reports to the effect that CEO Shin Hyun-seong profited from Luna’s extreme settlement, or that he profited through other fraudulent means, are at variance from the truth.” Told,
The recent move is reportedly part of a larger effort by South Korean authorities to build a case against TerraForm Labs for the unprecedented collapse of its ecosystem that wiped out more than $60 billion in funds and killed millions of retail users. caused heavy damage.
doo kwon hit with lawsuits
Shin Hyun-seong isn’t the only Terraform Labs executive who has come under regulatory scrutiny because of his involvement in the project. Du Kwon, founder of Terraform Labs, has be the target Several legal actions and threats in the last few months.
In mid-September, South Korean prosecutors issued An arrest warrant for Do Kwon, and Interpol added Kwon to its Red Notice list, requested law enforcement to potentially detain him.
Local media outlets at the time said that prosecutors were “in the process of freezing” tokens believed to be owned by Quan. These coins were allegedly held on an unnamed “foreign” crypto exchange that was “cooperating” with the Seoul Southern District Prosecutors’ Office.
Notably, retail investors in various jurisdictions have also filed lawsuits against members of TerraForm Labs, and specifically against Kwon.
In late October, 359 Terra investors filed a class action lawsuit against Kwon and Luna Foundation Guard (LFG) and Terra founding member Nicolas Platias in the High Court of Singapore on 23 September.
investors claimed they believed [TerraUSD] “would be a token that was stable by design [and] whose value will always be pegged to the US dollar,” but it was not “stable by design” and was unable to maintain its US dollar peg.
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