June 18, 2024

South Korean prosecutors indict co-founder of Terraform Labs

Article Reading Time:
1 min.

South Korean Prosecutors Indict Terraform Labs Co-Founder

South Korean authorities have accused at least ten employees of Terraform Labs, including the co-founder, of violating capital markets laws.

Co-founder Daniel Shin and seven others have been charged with illegal trafficking and two others have been charged with breach of trust.Prosecutors said at a briefing that all stakeholders are connected to Terra.According to the investigation, everyone was aware that the algorithm was not able to support the pegging of UST and LUNA, but they hid this information in order to promote their product.

Prosecutors froze 246.8 billion won ($184.7 million) in assets of the defendants. 

The company's founder, Do Kwon, used Switzerland's Sygnum Bank to legalize 10,000 BTC, according toBefore filing the lawsuit, he managed to withdraw about $100 million, including for the services of lawyers.South Korea and the U.S. have filed requests to freeze the balance.

Kwon himself hid fromInterpol before he was arrested at the airport in the capital of Montenegro on March 23. The businessman tried, local police say, to travel on a rented private jet with a fake Costa Rican passport. Montenegro prosecutors accused the founder of Terraform Labs of using a fake passport and other identification documents. 

Serbian police confiscated an apartment inBelgrade, where Do Kwon hid for six months before his capture in Montenegro. Police searched the €2.2 million duplex immediately after it became known that Do Kwon's associate Han Chang-Joon had bought the apartment while on the run.