On May 10, local news outlet Hankyung reported that more than 233.3 billion won ($176 million) of personal assets had been frozen by Terraform Labs co-founder and former CEO Do Kwon as part of an ongoing criminal proceeding.
Chief Judge Yun Chan-Young of the 12th Criminal Court of the Southern District Court in Seoul has banned the sale of Do Kwon's Galleria Foret apartment complex in Seoul, a new office hotel and a range of imported cars. The order also prohibits the disposition of Kwon's financial assets, such as securities, bank deposits and cryptocurrencies stored in personal accounts on virtual currency exchanges. Under South Korean law, suspects may be prohibited from disposing of crime proceedings or property until a conviction tion is confirmed. Kwon was arrested in the Balkan country of Montenegro on March 23 and later charged with forging documents. Both South Korean and US authorities are currently seeking extradition rights.
In May 2022, the Terra Luna (LUNC) dual-token ecosystem created by Kwon and Terraform Labs collapsed after depegging its native TerraUSD (USTC) stablecoin, wiping an estimated $40 billion in market cap in a matter of days. South Korean prosecutors charge Kw on with converting illicit funds from LUNC to Bitcoin And identified $314.2 million in illegal assets. Meanwhile, US prosecutors charged Kwon with eight counts of fraud related to promoting the Terra Luna blockchain.
