Terraform Lab's Do Kwon and Han Chang-joon would be subjected to house arrest under police supervision on a €400,000 (approximately $436,000) bail each.
The $176 million assets linked to Do Kwon that were seized by South Korean authorities include a posh office complex, a car fleet, and a Galleria Foret apartment in the capital Seoul.
South Korea is in an extradition battle with the United States for Do Kwon, who is currently facing passport forgery charges in Montenegro, as it promises a long sentence.
The lawsuit should be dropped as its protocols were developed overseas, according to Terraform Labs. It had been sued for selling unregistered securities.
Daniel Shin has continued to protest his innocence in the Terra debacle, with his lawyers arguing that he parted ways with the company in 2020 to start a new venture.
Do Kwon and his accomplice Han Chang-joon were arraigned before a Montenegrin Basic Court for holding fake Costa Rican passports—both could face up to five years if convicted.
Terraform Labs' execs have anticipated the implosion of the Terra project only grew stronger following the discovery of a $7 million payment to law firm Kim & Chang, authorities said.
The IMF insists that stringent laws and heightened monitoring of the digital asset market are crucial to prevent the recurrence of the implosions that rocked the global financial ecosystem in 2022.
Following the absence of Do Kwon’s funds in South Korea, prosecutors have written to Binance to freeze digital assets linked to the embattled Terraform Labs founder.
Authorities in South Korea insist that while an investigation into Terra's collapse is ongoing, asset seizures are necessary to prevent suspects from disposing of funds that could be key to solving the case.
Despite facing multiple charges, a district court judge has—for the second time—ruled against issuing an arrest warrant to Daniel Shin, noting his compliance with law enforcement agencies.