South Korean prosecutors have recently taken action against Kwon Do-Hyung, CEO of Terraform Labs, by freezing his assets worth $176 million. This move follows allegations of defrauding investors in the Terra-Luna project and related decentralized finance services. Interestingly, this development occurs just ahead of Kwon’s court hearing for travel document forgery charges in Montenegro, scheduled for May 11.
The frozen assets encompass Kwon’s Seoul residence, real estate, imported cars, securities deposited with Mirae Asset Securities, deposits with Woori Bank, and crypto assets in cryptocurrency exchanges. Additionally, authorities claim that Kwon and Terraform dealt with unregistered financial securities. Owing to the court’s decision, Kwon is now unable to move or sell assets and properties equivalent to his alleged illegal profits. These assets will be confiscated following a guilty verdict.
A severe punishment awaits Kwon if convicted, with the director of Seoul Southern District’s joint financial crimes team informing The Wall Street Journal last week that he may face over 40 years in prison. This would represent the heaviest sentence ever given for a financial crime in South Korea’s history.
Kwon, who was arrested on March 23, 2023, in Podgorica, Montenegro, faces charges of orchestrating cryptocurrency fraud in both the US and South Korea. He has denied any wrongdoing, claiming that while errors were made in managing the Terra-Luna crypto project under Terraform Labs, they were unintentional and not meant to deceive investors. However, recent reports suggest evidence that Kwon had prior knowledge of the network’s impending collapse.
With the court hearing for Kwon’s travel document forgery charges set to begin tomorrow in Montenegro, many are keeping a close eye on its outcome. In the grand scheme of things, this situation highlights South Korean authorities’ determination to crack down on white-collar crimes in the country.
As always, it’s crucial to conduct thorough market research before delving into the world of cryptocurrencies. Neither the author nor the publication assumes any responsibility regarding personal financial loss that may arise. Investors must be aware that the content presented here may contain the personal opinion of the author and hinges heavily on market conditions.
Source: Coingape
