23 April, 2024

South Korean Authorities Continue to Freeze Funds Related to Terra

20 Dec, 2022

25 Nov, 2023

Following the demise of the Terra ecosystem seven months ago, South Korean authorities have continued their investigation and have placed a hold on the cash of those engaged in Terra. According to a report published by a Korean local media outlet on December 20th, the Seoul Southern District Court has recently issued an order to freeze the assets of former and incumbent CEOs of Terraform Labs’ affiliate firm Kernel Labs. The total amount of these assets is approximately $92 million.

In business since 2018, Kernel Labs is a blockchain consultancy that specializes in DApps and dApp payment solutions. It has been alleged that the current CEO of Kernel Labs, Kim Hyun-joong, was once employed by Terraform Labs as the vice president of engineering. This lends credence to the notion that the two companies are closely connected.

Seven people, including Shin Hyun-seong, CEO of Chai Pay Holding Company, and Kwon Do-hyung, CEO of Terraform Labs, are accused of selling pre-issued Luna in order to generate huge profits for themselves and their companies.

They are also accused of pressing the issue without telling investors, despite the fact that they knew they could not execute the payment business with Terra and Luna. This raises another red flag about their business practices.

Amugae Kim, the Chief Executive Officer of Kernel Labs, was the one who had the most amount of unjust enrichment out of the seven people. Kim bought a building in Gangnam, Seoul, for the price of $27 million using the name of a firm that he controlled, and he also bought an apartment in Seongdong, Seoul, for the price of $6.8 million earlier this year.


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