- Terra CEO and other execs are accused of deceiving investors and collecting $350M.
- Authorities seized the Seoul apartment of Hyun-Seong and other properties.
- Assets that could be confiscated from Terra’s CEO is estimated to be zero.
According to a local report on Friday, the South Korean crypto company Terra is under investigation by prosecutors over allegations of fraud and embezzlement in billions of Korean WON (KRW).
Kwon Dohyung, the CEO of Terra, and members of the firm’s management team are accused of deceiving investors and collecting 414.5 billion Korean WON, equivalent to $350 million, through the virtual currencies Terra (Luna).
The prosecution estimates that Dohyung took a criminal profit of 91.4 billion KRW or $81 million. At the same time, Shin Hyun-Seong, a co-founder and former CEO of Chai, was said to have collected $137 million, while the remaining seven Terra employees were accused of sharing $150 million.
As part of the investigation, prosecutors are extensively tracking the assets of those involved to confiscate the profits they gained through Terra. The authorities have imposed a seizure on the Seoul apartment owned by Hyun-Seong and other properties, including land and cars.
Interestingly, the Terra CEO’s case appears complex as assets that could be confiscated and seized were estimated to be zero despite collecting hundreds of millions in criminal proceeds. The prosecution theorized that Dohyung had converted a significant portion of his assets into virtual currencies such as Bitcoin and transferred them to overseas asset exchanges.
Consequently, South Korean authorities have requested Binance, the world’s largest exchange, to prevent Dohyung from withdrawing his cryptocurrencies.
Last September, Dohyung reportedly attempted to cash out 3,333 units of Bitcoin (BTC), equivalent to nearly $100 million, the day after the Korean authorities issued an arrest warrant against him. However, the Terra CEO denied the claim.
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