South Korean authorities recently ordered the seizure of about 120 billion Won ($92 million) in assets from Kernel Labs. The basis of the order was that Kernel labs was affiliated with former Terraform labs’ CEO and reportedly held the most significant portion of the Terra loot.
Kernel Labs CEO Forfeits 120 Billion Won To Authorities
The adverse effect of the Terra collapse, which happened in May, seems fresh in the heart of victims who lost their funds. As they seek justice, the authorities continue to investigate and recover loot from individuals involved in the case.
Previously in November, a court in Seoul authorized the confiscation of about 140 billion Won ($108 million) in assets from Shin Hyun-Seong, the co-founder of Terra. In addition, the court revealed that it would further seize all proceeds of the collapse from every individual and organization involved.
According to reports, a court in South Korea recently authorized the freezing of about 120 billion Won ($92M) in crypto assets from Kernel Labs. Kernel Labs is a cryptocurrency company offering startups decentralized apps and payment services.
According to the report, the firm’s CEO, Kim Hyun-Joong, was reportedly affiliated with the Terra network. Additionally, he once worked at Terra labs as an executive; some employees of his firm reportedly worked with Terraform Labs before it collapsed.
Also read:In addition, the court has ordered the confiscation of seven individual properties according to the prosecution’s proposition. The individuals affected were said to be actively involved in the sale of pre-launched Terra LUNA at $1.28, where they made massive profits.
Earning Enormous Illegally
Kim, the CEO at Kernel Labs, was one of the seven accused individuals and made an enormous amount of proceeds acquired from the illegal sale. According to the prosecution, Kim gained about 79 billion Won ($61M), while the former CEO of Kernal Labs also holds about 41 billion Won ($31M) from the same illegal sales.
Furthermore, a report revealed that Kim purchased some real estate properties last year in South Korea. In addition, he reportedly bought a 35 billion Won ($27 million) building in the most luxurious site in Seoul, Gangnam-gu, last month. In June, Kim allegedly purchased a building at a whopping $7 million (9 billion Won) in Seongdong-gu.
The authorities uncovered the CEO’s lavish expenditures while investigating the suspicious Terra network founder, Do Kwon. Reports revealed that S. Korea’s law enforcement agents had traced the whereabouts of fleeing Do Kwon to Serbia after he departed from Singapore.
Meanwhile, the collapse of the Terra network in May spelled hell for individual and whale investors as many platforms folded up and some investors went bankrupt. The network’s stablecoin, USTC, was among the top ten crypto assets before it started to depeg and eventually crashed, bringing down its sister coin, LUNA.
The effect of the failed network is still being felt in the crypto market.
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