The Southern District Court in Seoul, South Korea has accepted the request to freeze Terraform Labs CEO Do Kwon’s assets and decided to seize all of his properties. According to Seoul prosecutors, the value of these assets, which were obtained entirely through illegal gains, has been determined to be 233 billion won (approximately $176 million). Additionally, there are allegations that Kwon and Terraform provided services for unregistered financial securities.
According to the court’s decision, the sale of Do Kwon’s commercial and residential apartment “Galleria Foret” and a new office building has been prohibited. However, his securities deposited with Mirae Asset Securities, deposits in Woori Bank, and cryptocurrency deposited with crypto exchanges cannot be touched. Requests for the recovery and protection of other financial assets were rejected.
Do Kwon, the CEO known for the collapse of the Terra-Luna cryptocurrency, went abroad and disappeared shortly after the incident. According to previous reports, Do Kwon was arrested and imprisoned in Montenegro in March on charges of using a fake passport. Both the United States and South Korea are requesting his extradition.
Do Kwon repeatedly denied all allegations against him, claiming that mistakes were made in the Terra-Luna crypto project managed by Terraform Labs, but it was not designed to deceive investors.
“If Do Kwon is found guilty, he could face more than 40 years in prison, making it the heaviest penalty ever given for a financial crime in the country’s history.”Dan Sung-han, director of the Seoul Southern District joint financial crimes team
Finally, Do Kwon’s hearing in Montenegro is scheduled for May 11th.
The court’s decision to seize the assets is considered a significant step taken during the ongoing investigation into Do Kwon’s alleged illegal gains. However, as he still maintains his innocence, experts believe that the court process could be prolonged.