South Korea Freezes Do Kwon’s $176 Million Worth Assets

South Korean prosecutors have frozen assets worth US$176 million belonging to Kwon Do-Hyung, CEO of Terraform Labs, over allegations that he defrauded investors in the Terra-Luna project and related decentralized finance services. This comes just before the court hearing for Kwon’s travel document forgery charges in Montenegro is set for May 11.

Do Kwon Assets Frozen

The assets include Kwon’s Seoul residence, real estate, imported cars, securities deposited with Mirae Asset Securities, deposits with Woori Bank, and crypto assets in cryptocurrency exchanges. Authorities also alleged that Kwon and Terraform serviced unregistered financial securities.

The court’s decision means Kwon cannot move or sell the assets and properties equivalent to the amount of his alleged illegal profits, which will be confiscated following a guilty verdict.

The director of Seoul Southern District’s joint financial crimes team told The Wall Street Journal last week that Kwon could face over 40 years in prison if convicted, the heaviest sentence given to a financial crime in South Korea’s history.

Charges Against Terra Founder

The Terra founder is facing charges of orchestrating a cryptocurrency fraud both in the US as well as South Korea. He was arrested on March 23, 2023, in Podgorica, Montenegro.

Kwon has denied all the allegations against him, stating that mistakes were made in the Terra-Luna crypto project managed by his Terraform Labs, but they were not designed to deceive investors. However, according to the latest reports, there have been incidents that prove Kwon knew beforehand about the collapse of the network.

Eyes are on the court hearing in Montenegro for Kwon’s travel document forgery charges that will take place tomorrow. Overall, with this move, it appears that the South Korean authorities are taking a strong stance against white-collar crimes in the country.