According to a report in the Korea Economic Daily, the assets of some past and incumbent CEOs of Kernel Labs, a subsidiary of Terraform Labs, worth approximately KRW 120 billion ($92 million), have been frozen by South Korean authorities.
The Seoul Southern District Court recently moved to freeze the Terra-related assets after seizing 140 billion won ($108 million) from Terra co-founder Shin Hyun-Seong in November.
Given that CEO Kim Hyun-joong had allegedly held the position of vice president of engineering at Terraform Labs, it is thought that Kernel Labs and Terraform Labs have a tight working relationship, and some reports suggest that Terraform Labs’ South Korean headquarters also employed people from Kernel Labs.
The Seoul Southern District Court has granted the prosecution permission to seize the assets of seven individuals (three original Terra and Luna investors and four key personnel in technology development) who sold pre-issued Terra LUNA tokens for massive profits.
The CEO of Kernel Labs Kim Hyun-joong Kim Hyung-joong, is said to be in possession of the highest amount of Terra’s unlawful gains among the seven individuals involved, according to the report.
Under the name of a firm he owned, Kim paid 34.8 billion won for a building in November 2021 in high-brow Yeoksam-dong, Gangnam-gu, Seoul. In June, he also splashed 8.8 billion won on an apartment in Seongsu-dong, Seongdong-gu, Seoul.
Kim’s illegal earnings were thought to be worth at least 79 billion won ($61 million) by the prosecution. Another Kernel Labs executive, a former CEO, was discovered by the prosecution to have collected $31 million in unlawful revenues from Terra.
The crash of the Terra ecosystem was one of the most controversial events in the cryptocurrency market in 2022.
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