The authorities of South Korea has recently revealed that the prosecution requested the crypto exchange Binance to freeze the crypto funds held by Daniel Shin, the co-founder of Terraform — according to the KBS News.
Shin, according to a prosecutor’s office representative from Seoul’s Southern District, transferred a huge variety of cryptocurrencies — including Bitcoin (BTC), Ether (ETH), and Tether (USDT) — to overseas exchanges, such as Binance. The representative clarified that the funds were to be frozen by the exchange as soon as it is proven that Shin was the rightful owner.
South Korean authorities reported that Do Kwon, the former CEO of Terraform Laboratories, and other Terra executives made over $314 million off the project. Due to the CEOs’ involvement in the $40 billion blockchain crash, the capital accumulated has been deemed illegal.
The $314 million profit reportedly belonged to nine Terra employees, both present and past. Out of the total, the founder Do Kwon himself owns around $69 million. Co-founder Shin made close to $41 million from the blockchain.
Prosecutors are also aiming to confiscate properties owned by the founders and executives in Seoul, Hwaseong, Gapyeong, and Taean, South Chungcheong. One interesting point to note is that the prosecution claims to not have found any property under Kwon’s name.
The former CEO, according to the prosecutors, transferred the majority of his income to cryptocurrency exchanges after converting it into Bitcoin. Hence, Binance has been urged to prevent Kwon’s deposits from being withdrawn.
Shin’s house and offices have been raided by prosecutors several times. They may possibly be attempting to obtain an arrest warrant for Shin after failing in their first attempt towards the end of last year.
The prosecution suspected additional crypto had been concealed by Terra officials and stated that it continued to look into the situation.
