On May 10, local news outlet Hankyung reported that Do Kwon, co-founder and former CEO of Terraform Labs, had over 233.3 billion Korean won ($176 million) in personal assets frozen as part of ongoing criminal proceedings.
Chief Judge Yun Chan-Young of the 12th Criminal Division of the Seoul Southern District Court has prohibited the sales of Do Kwon's Galleria Foret apartment complex in Seoul, a novel officetel and a series of imported cars. The order also bans the disposition of Kwon's financial assets, such as securities, bank deposits and cryptocurrency stored in personal accounts on virtual currency exchanges.
According to South Korean law, suspects may be prohibited from disposing of the proceeds or property obtained from a crime until a conviction is confirmed. On March 23, Kwon was arrested in the Balkan nation of Montenegro and subsequently charged with falsifying documents. Both South Korean and U.S. authorities are currently seeking Kwon's extradition.
In May 2022, the Terra Luna (LUNC) dual-token ecosystem created by Kwon and Terraform Labs imploded after the de-pegging of its native TerraUSD (USTC) stablecoin, erasing an estimated $40 billion in market value in a matter of days. South Korean prosecutors allege Kwon converted illicit funds from LUNC to Bitcoin (BTC) and have identified $314.2 million in illicit assets. Meanwhile, United States prosecutors have charged Kwon with eight counts of fraud related to his promotion of the Terra Luna blockchain.
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