Terraform Labs founders Daniel Shin (left) and Do Kwon / Photo credit: Terraform Labs
Do Kwon, who was recently arrested for alleged cryptocurrency fraud, is facing asset freeze proceedings in South Korea, local news outlet Yonhap News reported.
Prosecutors said that they are locking up Kwon’s assets, including those worth nearly 7.1 billion won (US$5.3 million) in the country. They are also tracing criminal proceeds that Kwon earned overseas and transferred to various cryptocurrency exchanges and Swiss bank accounts.
Kwon, the co-founder of failed crypto firm Terraform Labs, has been under investigation for alleged fraud and tax evasion, and his arrest came after him being 11 months on the run. He was the main developer of crypto tokens TerraUSD and Luna, whose values crashed last year, costing investors and other crypto firms over US$42 billion in losses.
See also: UST, lies, and Hodlnaut: How a rising star fell back to earth
The US Securities and Exchange Commission (SEC) had earlier charged Do Kwon with defrauding investors. Kwon is also facing investigations in South Korea and Singapore.
Currency converted from Korean won to US dollar: US$1 = 11,322.18 won.
Editing by Miguel Cordon and Dhania Putri Sarahtika
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