While Terra collapsed about 6 months ago, investigations into the decline of the Terra ecosystem are still ongoing. In South Korea, authorities have now frozen approximately €86.5 million in assets that could be linked to Terra.
Lots of money frozen
In November, 140 billion Won, or approximately $86.5 million, was seized from Terra co-founder Shin Hyun-Seong. Still, they want to take extra steps, so an order has been issued to freeze 120 billion Won ($86.5 million) in assets of the former and incumbent CEOs of the Terraform Labs and its affiliate Kernel Labs.
Founded in 2018, Kernel Labs is a blockchain consultancy focused on decentralized applications and blockchain payment systems. The companies have close ties, as the CEO Kim Hyun-joong was reportedly once the vice president of engineering at Terra Form Labs. They are rumored to even share office spaces.
Illegal Profits
It is reported that funds are now being frozen from 7 people involved in the sale of pre-spent Terra tokens. A bizarre profit was then made on these tokens. The proceeds of this are regarded as illegal and are now being investigated.
According to prosecutors, the illegal profits would amount to at least 79 billion won, or about 57.8 million euros. The Kernel Labs CEO is said to have made some major real estate purchases in South Korea in 2021. In November, he bought a building in Gangnam-gu, the most expensive area in Seoul, for 35 billion won ($25 million). In June, he also bought an apartment in Seongdong-gu for about 9 billion Won ($6.5 million).
It is noteworthy that Do Kwon, the controversial founder and CEO of Terraform Labs, is still wanted. Since the collapse of Terra, the CEO has been missing. According to latest reports, he is said to have hidden in Serbia, but it is unclear whether he is still here at the moment.