South Korean Officials Freeze $92M Worth of Crypto Linked to Terra Ecosystem

The South Korean Court ordered officials to freeze digital assets worth more than 120 billion won (around $92 million) from former and incumbent CEOs of Kernel Labs.

According to the Korea Economic Daily news report shared on December 20th, the company and its CEOs have connections with Terraform Labs.

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Kernel Labs is a consultancy firm specializing in blockchain payment systems and decentralized applications.

It is believed that the company has strong ties with Terraform Labs. Kernel Labs CEO Kim Hyun-Joong was reportedly a “vice president of engineering at Terraform Labs.” On top of that, it is believed that many Kernel Labs employees have also worked for Terraform Labs.

South Korean officials believe that Hyun-Joong obtained the most illegal proceeds from Terra. It is estimated that Kim collected around 79 billion won ($61 million), which were used to purchase a building worth approximately 35 billion won ($27 million) and an apartment valued at around 9 billion won ($7 million).

Another actor in illegal actions was Kernel Labs executive and former CEO Mr Choi, which obtained around 41 billion won ($31 million) from illicit activities.

The Korean Economic Daily news report revealed that the Seoul Southern District Court followed the request issued by prosecutors and collected or preserved properties of seven Terraform Labs-related individuals. It is reported that three individuals were early investors in Terra and Luna, while the other four worked in technology development.

It is worth noting that in November, authorities seized around 140 billion won ($108 million) from one of Terra’s co-founders Shin Hyun-Seong.

Nevertheless, at the end of November, the news broke that the Seoul Southern District Prosecutors Office in South Korea had issued an arrest warrant for Terraform Labs co-founder Daniel Shin, three investors, and four engineers. On top of that, it is believed that Terra co-founder Do Kwon is currently hiding in Serbia.