Prosecutors investigate Terra executives’ 414.5 billion KRW illicit gains, while CEO Do Kwon’s seizable assets and stolen millions could total zero.
Recent developments in the Terra and Luna fiasco indicate that prosecutors have ascertained a minimum of 414.5 billion KRW ($315 million) in unlawful gains for Terra’s top executives, including CEO Do Kwon. Authorities have now initiated asset seizure procedures. However, Do Kwon, a central figure in the case, possesses zero domestic assets subject to confiscation, exempting them from the list of targeted properties.
An in-depth analysis of the court’s decision on preserving assets exposes the staggering profits accrued by Do Kwon and Terra’s executive team through deceiving investors with digital currencies Terra and Luna. To confiscate these illicit proceeds, prosecutors are rigorously tracing their domestic assets.
Court documents secured by KBS provide details on the illicit earnings of individuals associated with Terra, amounting to an aggregate of 414.5 billion KRW. Terra’s pivotal figure, Do Kwon, is believed to have obtained 91.4 billion KRW in unlawful gains. Co-founder Daniel Shin, previous allegedly got 154.1 billion KRW, while an additional seven Terra staff members have jointly accumulated 169 billion KRW.
What are Prosecutors Doing?
The initial phase in reclaiming illicit earnings involves freezing assets. Prosecutors have seized Seoul-based apartments belonging to Shin Hyunseong and others, in addition to lands in Hwaseong and Gapyeong in Gyeonggi Province, and Taean in South Chungcheong Province. High-end vehicles operated by them have also been seized to avert sales or unauthorized transfers during the legal proceedings.
Nonetheless, Do Kwon’s circumstances stand in contrast. Despite raking in criminal profits in the hundreds of billions, Kwon’s confiscatable assets currently amount to nothing. An official from the prosecutor’s office disclosed that Kwon’s locally held assets are virtually absent. Kwon appears to have exchanged a considerable portion of his assets for Bitcoin and other digital currencies, subsequently transferring them to international virtual asset exchanges.
Prosecutors have petitioned the world’s largest exchange, Binance, among others, to impede the withdrawal of digital currencies owned by Do Kwon. As the inquiry progresses, law enforcement aims to recoup the immense sums garnered through fraudulent schemes and hold the culpable parties responsible.