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South Korean court confiscates $92M in assets linked to Terra tokens

South Korean authorities are leaving no stone unturned in the quest to solve the curious case of Terra’s collapse. The latest effort by prosecutors is freezing $92 million in assets affiliated with Terra tokens on the orders of a Seoul Southern District Court.

The confiscated assets were obtained from Kernel Labs, a firm with close ties with Terraform Labs. Court documents show Kernel Labs’ CEO Kim Hyun-Joong served as Vice President of Engineering at Terraform Labs, while there is widespread speculation that Kernel Labs’ employees regularly worked from Terra’s offices.

The court accepted the application of the prosecution to seize the assets of seven persons associated with the sale of pre-issued Terra tokens. Kernel Labs CEO Kim was identified as part of the seven and allegedly netted gains over $61 million, the largest of the lot.

Court documents revealed that Kim purchased real estate in the affluent areas of Gangnam-gu and Seongdong-gu for $27 million and $7 million, respectively. The documents also disclosed that a former Kernel Labs executive netted $31 million in illegal profit from selling pre-issued Terra tokens.

The seizures are coming on the heels of the freezing of $108 million belonging to Terra’s co-founder Daniel Shin linked with pre-issued LUNA tokens. Prosecutors argued that the seizures would prevent the accused from disposing of the assets and help bring justice to Terra’s victims.

Despite the efforts of South Korean authorities to unravel the shroud around Terra’s collapse, Do Kwon, the project’s founder, has continued to evade authorities. However, a new investigation revealed that Kwon was hiding out in Serbia after prior suspicion that he was holed up in either Hong Kong, Dubai, or Mauritius.

Hurdles after hurdles for law enforcement

Prosecutors have not had an easy ride in bringing the Terra debacle to a close as they grapple with legal hurdles. In early December, the court dismissed an application for arrest warrants against several ex-employees of Terraform, including Daniel Shin, on the grounds that suspects have indicated a high level of cooperation.

Following the dismissal of the application, Terraform Labs released a statement saying that the move “illustrates that the prosecution is trying to stretch Korean laws beyond their breaking point.”

“I left (Terraform Labs) two years before the collapse of Terra and Luna, and have nothing to do with the collapse,” said Shin in his defense.

Despite repeated attempts at sounding his innocence, Shin’s private residence was invaded by law enforcement in the weeks following Terra’s implosion. Offices of Chai Corporation, his new startup, were also raided for proof of any involvement with Terra.

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