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Crime and Investigations

Seoul Prosecutor’s Office Confiscates $160 Million in Assets Connected to Terra Collapse

Seoul Prosecutor’s Office Confiscates $160 Million in Assets Connected to Terra Collapse

The Seoul Southern District Prosecutor's Office has reportedly taken control of houses and properties connected to the collapse of Terraform Labs, including co-founder Daniel Shin, in an attempt to prevent former employees from disposing of assets potentially related to criminal proceedings.

According to an April 3 report from South Korean news outlet KBS, authorities have seized roughly 210 billion won, equivalent to $160 million at the time of publication, the worth of property from eight people connected to the collapse of Terra.

The confiscated property mainly consisted of real estate owned by former Terra employees. Prosecutors reportedly took control of houses and properties owned by former Terra Vice President Kim Mo and an unnamed executive worth roughly $60 million and $31 million, respectively.

“We are still investigating the property ownership status of the suspects, and we plan to carry out collection preservation for the confirmed property in the future to recover the proceeds of crime and recover damages,” said a spokesperson for the prosecution team.

The prosecutors’ actions reportedly aimed to prevent former Terra employees from disposing of assets to ensure they were part of potential criminal proceedings. This move follows the prosecutor’s office’s similar measures in November 2021, where they seized Shin’s home in Seoul. They are reportedly still investigating other assets allegedly connected to the Terra co-founder.

At the time of publication, no South Korean court had authorized an arrest warrant for Shin. The report also did not mention any crypto assets seized as part of the investigation.

Terraform Labs is a blockchain firm based in South Korea that has developed a stablecoin platform called Terra. The platform aimed to offer stablecoin solutions to various sectors, including e-commerce, gaming, and remittances. It has received investment from leading venture capital firms such as Polychain Capital, Arrington XRP Capital, and FBG Capital.

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The collapse of Terra came after the platform suffered from multiple issues, including technical problems, which led to significant losses for investors. In March, co-founder Do Kwon was arrested in Montenegro after months without definitive public knowledge of his whereabouts. Montenegrin Justice Minister Marko Kovač announced on March 29 that the local government had received requests from both the United States and South Korea regarding taking Kwon into custody.

The investigation into the collapse of Terra is ongoing, and further updates are expected to follow as the case progresses.

Andrey Kunev

Reporter at CoinsPress

Andrey Kunev is a knowledgeable cryptocurrency content creator passionate about the crypto market. With extensive experience in market analysis and investment reporting, Andrey is a valuable asset to the CoinsPress team. As a frequent contributor, he offers insightful and comprehensive coverage of market trends, price fluctuations, and new advancements in cryptocurrency. Whether you're a seasoned investor or just getting started, Andrey's clear and concise writing offers a comprehensive look at the current state of the crypto market and its prospects. Stay up-to-date with CoinsPress's expert analysis and commentary on all things cryptocurrency.

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