Terra: South Korea Freezes $92 million of Assets from Sister Firm

Paigambar Mohan Raj
Source: Coinpedia

According to local reports, the South Korean court has frozen $92 million worth of assets from Terra’s sister company, Kernel Labs. Six months after its collapse, authorities are still investigating the implosion of Terra and freezing the funds of people related to the firm.

The Seoul Southern District Court has granted the prosecution’s motion to confiscate the properties of seven persons. The people in question were involved in selling pre-issued Terra tokens for profits. One of the parties in the lawsuit is Kernel Labs CEO Kim Hyun-Joong, who is said to have the highest amount of unlawful Terra earnings. Kim’s unethical earnings were worth at least $61 million. Additionally, prosecutors discovered that a previous CEO of Kernel Labs earned around $31 million in unlawful gains.

In 2021, Kim allegedly made several significant real estate purchases in South Korea. He paid $27 million in November for a building in Gangnam-gu, the costliest district in Seoul. He also spent around $7 million in June on an apartment in Seongdong-gu.

What is Terra’s sister firm Kernel Labs?

Kernel Labs is a blockchain consulting company specializing in decentralized apps and blockchain payment networks. The firm was founded in 2018. CEO Kim Hyun-alleged Joong was previously employed as Terra’s vice president of engineering. Therefore, it is thought that the two companies were closely related. Some reports claimed that workers from Terraform Labs’ South Korean headquarters also worked at Kernel Labs.

The news comes as international law enforcement agencies continue to look for controversial Terraform Labs founder and CEO Do Kwon. The most recent indications indicate that Kwon, who left Singapore a few months ago, is thought to have been hiding in Serbia as of mid-December, according to South Korean police.

At press time, LUNC (previously LUNA) was trading at $0.00013396, down by 4.5% in the last 24 hours. Meanwhile, the new LUNA token was trading at $1.29, down by 2.9% in the previous 24 hours.