- Terraform Labs affiliate Kernel Labs had $92 million in assets frozen.
- Prosecutors have frozen the assets of seven individuals.
- Meanwhile, Do Kwon, the former CEO, is reportedly living in Serbia.
According to local news outlets, a South Korean court has granted a plea by local prosecutors to freeze the assets of seven former partners of Terraform Labs Pte. Ltd. at Kernel labs, totaling over 120 billion Korean won valued at $93.3 million. Before this, a South Korean court ordered the freezing of $108 million worth of assets belonging to Terra co-founder Shin Hyun-Seong.
The Seoul Southern District Court has approved prosecutors’ request to freeze the assets of seven individuals who made significant gains by selling pre-issued Terra LUNA tokens. According to reports, Terraform Labs’ South Korean headquarters was staffed by employees from both Kernel Labs and Terraform Labs.
Among the seven are Choi, a former CEO of Kernel Labs, and Kim, the company’s current CEO. Both individuals’ last names were kept secret. Kim Hyun-Joong, CEO of Kernel Labs, formerly worked as a VP of Engineering for Do Kwon’s Terraform Labs. It has been speculated that the CEO of Kernel Labs has the bulk of the illegal proceeds from Do Kwon’s firm.
Allegedly the CEO of Kernel Labs received $61 million in illegal funds from Terra, amounting to at least 79 billion won, according to prosecutors. In 2021, Kim allegedly made several sizable property purchases in South Korea.
In November, he spent 35 billion won ($27 million) on a building in Gangnam-gu, the most expensive neighborhood in Seoul. In June, he also spent almost 9 billion won ($7 million) on a Seongdong-gu condo. Further, prosecutors also claim that Choi, the former CEO of Kernel Labs, benefited from the company’s illicit activities by receiving roughly 41 billion won ($31 million).
The reports come as authorities worldwide continue searching for Do Kwon, the controversial founder and CEO of Terraform Labs. Local Korean media said last month; prosecutors asked Serbian authorities for help after tracking Kwon in the European state after leaving Singapore a few months back.