- Terra executives, including CEO Kwon Do-hyung, face asset seizure and recovery.
- CEO Kwon’s domestic property was estimated at ‘0 won,’ and he may have transferred assets to Bitcoin.
- Prosecutors asked Binance to block the withdrawal of crypto owned by CEO Kwon.
According to recent reports, South Korean authorities have seized assets valued at a minimum of 414.5 billion won belonging to executives of Terra, a cryptocurrency exchange. The seized assets include funds belonging to the CEO, Kwon Do-hyung, who is estimated to have earned 91.4 billion won in criminal proceeds.
The move by the prosecution is part of a broader crackdown on illegal activities in the cryptocurrency market, as the government seeks to regulate the industry and prevent illicit activities such as money laundering and fraud.
Kwon’s untraceable assets raise questions
While the recent seizure of assets belonging to Terra’s executives is a significant development, Kwon Do-hyung may have taken steps to protect some of his assets. According to the court’s decision, Kwon Do-hyung’s domestic property was not included in the provisional seizure, as it was identified as having zero value.
However, there are suspicions that Kwon Do-hyung may have transferred a significant portion of his assets into Bitcoin and sent them to an overseas virtual asset exchange.
In a further development, South Korean prosecutors are now focusing on Binance, the world’s largest cryptocurrency exchange. According to reports from KBS news, the prosecution has asked Binance to block the withdrawal of Kwon Do-hyung’s cryptocurrency to prevent him from accessing his illegal gains.
Prosecutors Take Action Against Cryptocurrency Crime
In the ongoing crackdown on illegal activities in the cryptocurrency market, South Korean prosecutors have taken further steps toward recovering the proceeds of crime. Following the seizure of assets belonging to Terra’s executives, prosecutors have applied for foreclosure on apartments in Seoul owned by former CEO Shin Hyun-seong and others.
In addition, the prosecutor extended the foreclosure to include lands in Hwaseong and Gapyeong in Gyeonggi-do, Taean in South Chungcheong Province, and foreign cars they drove.
On the other hand, the seizure of assets and the ongoing investigation into Terra and its executives are not the only legal issues facing Kwon Do-hyung. Kwon Do-hyung recently garnered attention for challenging the legal jurisdiction of the United States.
Based on a report by journalist Kim Dong-ho, the arrest of Kwon has sparked a race between law enforcement agencies in South Korea and the United States to secure his extradition. As of now, it is still being determined which jurisdiction will ultimately be successful in securing Kwon’s extradition.