Authorities in South Korea Approved to Freeze More Assets Associated With Terra tokens

A South Korean court has approved local prosecutors‘ request to freeze assets of more than 120 billion Korean won (US$93.3 million) belonging to seven former associates of Terraform Labs Pte. Ltd., according to local media reports, and are still investigating Terra’s collapse.

Local prosecutors also reportedly accuse them of issuing Terra stablecoin and Luna cryptocurrency without telling investors that the tokens cannot be adopted as payment measures. According to a ruling by the Seoul Southern District Court in recent times, more assets associated with the ecosystem should be confiscated. The Korea Economic Daily‘s report on December 20 shows that a South Korean court has ordered the freezing of assets valued at 120 billion won belonging to former and incumbent CEOs of Terraform Labs’ affiliate company Kernel Labs.

Kernel Labs focuses on decentralized applications and blockchain payment systems. It is believed that the blockchain consultancy company is closely associated with Terraform Labs. Certain sources show that Kernel Labs employees likewise worked at Terraform Labs South Korean office.

The new report said Seoul Southern District Court gave the prosecution approval to seize seven peoples properties as they were involved in the sale of pre-issued Terra tokens.

Authorities across the world are still searching for Terraform Labs' founder and CEO Do Kwon. Recently, it was reported that South Korean authorities believe that he was hiding in Serbia as of the middle of this month.

Terras collapse is among the biggest issues in the crypto space this year. TerraUSD Classic (USTC) lost its peg to the USD several months ago, thereby prompting a domino effect on cryptocurrency markets. Huge liquidation and uncertainty ensued, which ultimately undermined the cryptocurrency lending space.