Terraform Labs property worth $205 million was seized in South Korea

After the inventory, the authorities will be able to sell the property to compensate the affected users

03.04.2023 - 12:20

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3 min

What’s new? The South Korean prosecutor’s office has seized the real estate of eight Terraform Labs (TFL) executives and employees, including co-founder Daniel Shin, to the tune of $205 million. Real estate, vehicles, and stock assets of early investors and company employees who are suspects in the case against Terra were also frozen. 8BTCnews journalists reported on April 3.

South Korean prosecutors have investigated and seized more than 200 million US dollars in real estate of Terra executives and employees — 8BTCnews (@btcinchina) April 3, 2023

What else is known? According to a spokesperson for the prosecutor’s office, the agency plans to take an inventory of seized assets in the future to sell them in order to compensate users affected by the May 2022 collapse of the Terra ecosystem.

More details about the TFL situation. Almost immediately after the project’s collapse, South Korean retail investors filed a class action lawsuit against TFL CEO Do Kwon, and local authorities accused him of tax evasion and began investigating company employees over alleged fraud.

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In July, the government began cooperating with the United States on the investigation of TFL’s activities. On March 23, Kwon was detained in Montenegro with forged documents and had been wanted since last September. After that, the US attorney’s office charged him with fraud and market manipulation, saying it plans to seek the entrepreneur’s extradition. Kwon had also previously been sued by investors in California, and the financial regulator accused him of withdrawing $238 million from the project.

In March, a TFL investigation was launched in Singapore, with local investors also suing the company for $57 million.

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