Months after the Terra ecosystem's demise, South Korean authorities are still investigating and freezing the funds of Terra participants.
The Seoul Southern District Court recently ruled to confiscate more Terra assets after seizing 140 billion won ($108 million) from Terra co-founder Shin Hyun-Seong in November.
The assets of former and incumbent CEOs of Terraform Labs' affiliate firm Kernel Labs have been frozen by a South Korean court, according to The Korea Economic Daily.
According to the latest report, the Seoul Southern District Court has granted the prosecution's request to seize the property of seven people involved in the sale of pre-issued Terra (LUNA) tokens for exuberant gains.
Kernel Labs is a blockchain consulting company that specializes on decentralized applications and blockchain payment networks. It was founded in 2018. Due to CEO Kim Hyun-alleged joong's prior employment as Terraform Labs' vice president of engineering, it is believed that Kernel Labs and Terraform Labs have a tight working relationship.
One of the parties in the case is Kernel Labs CEO Kim, who is said to be in possession of the highest amount of unlawful Terra earnings. Kim's illegal earnings were worth at least 79 billion won ($61 million), according to the prosecution. Additionally, prosecutors discovered that a previous CEO of Kernel Labs earned around 41 billion won ($31 million) in unlawful proceeds from Terra.
Kim is said to have made significant real estate investments in South Korea in 2021. In November, he paid 35 billion won ($27 million) for a building in Gangnam-gu, Seoul's most affluent neighborhood. In June, he also paid almost 9 billion won ($7 million) for an apartment in Seongdong-gu.
According to some sources, Kernel Labs personnel also worked at Terraform Labs' South Korean branch.
The news comes as authorities throughout the world continue to look for Terraform Labs' controversial founder and CEO Do Kwon. According to the most recent sources, South Korean investigators believe Kwon was hiding in Serbia in mid-December after leaving Singapore a few months earlier.
As was previously reported, one of the largest contagion events in the cryptocurrency market in 2022 was the Terra collapse. Prior to losing its peg to the US dollar in May, TerraUSD Classic (USTC), an algorithmic stablecoin, was among the top 10 cryptocurrencies.
The incident set off a chain reaction that devastated the cryptocurrency loan market by triggering enormous liquidations and unpredictability.
