Key Takeaways

  • Korean courts have frozen $2 billion of Do Kwon’s property, seizing luxurious vehicles and residences.
  • Awaiting Kwon is a passport fraud trial in Montenegro and eight felony fraud costs in the US.

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South Korean authorities have frozen round $2 billion price of property tied to Do Kwon, the CEO of blockchain agency Terraform Labs, as they proceed their investigation into the catastrophic crash of cryptocurrencies Terra Basic (USTC) and Luna Basic (LUNC). 

Native authorized insiders disclosed that Seoul’s Southern District Courtroom permitted a pre-indictment asset seizure request by prosecutors focusing on Kwon’s wealth on Could 10, according to native information outlet Hankyung. The request sought to freeze round 2.33 trillion Korean gained (roughly $2 billion) in property that Kwon allegedly accrued by felony actions. This pre-indictment seizure prevents the disposal of property or income obtained by a defendant earlier than a conviction is finalized.

The courtroom’s resolution places a halt on Kwon’s potential resolution to eliminate numerous high-value property together with the luxurious “Galleria Foret” condominium complicated in Seoul’s Seongdong-gu district, the rights to newly constructed office-tels in Nonhyeon-dong and several other imported luxurious automobiles. Along with these bodily property, monetary holdings reminiscent of securities held with Mirae Asset Daewoo, deposits in Woori Financial institution, and cryptocurrencies in numerous exchanges are additionally now frozen. The courtroom rejected requests to freeze a few of Kwon’s different unspecified monetary property.

Kwon, at present indicted with out detention, and Hyun Sung Shin, former CEO of Chai Company, co-founded Terraform Labs in 2018 and launched the USTC stablecoin and LUNC cryptocurrencies. Following the venture’s collapse, Terraform Labs rebranded its cryptocurrencies: dollar-pegged TerraUSD (UST), which is now defunct, was Terra Basic; and the extra speculative Terra (LUNA) rebranded to LUNA2 whereas the unique LUNA blockchain was renamed Luna Basic (LUNC). 

 In Could 2022, a drastic plunge in the value of those cash inflicted world buyers with losses approximated at a staggering 50 trillion gained, or round $44 billion.

Following the Terra crash, Kwon left South Korea and had been troublesome to trace till he was arrested in Montenegro on March 23, 2023, going through costs of utilizing a counterfeit Costa Rican passport on his technique to Dubai. Kwon is now awaiting trial in Montenegro for passport fraud costs, whereas the US charged Kwon with eight criminal charges of fraud. Korean and United States prosecutors are unsure when they’ll be capable of safe his extradition.

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