South Korean authorities are intensifying their efforts to crack down on the alleged crypto fraud involving Terra and Luna. The latest developments reveal that the prosecutors have seized assets worth KRW 414.5 billion (approx. $347 million) from the management team of Terra. The amount also includes Do Kwon’s alleged involvement of KRW 69 billion (approx. $57 million).
According to KBS News, prosecutors have also requested Binance to stop Do Kwon from withdrawing cryptocurrencies. Do Kwon is allegedly planning to exchange a large portion of his property for Bitcoin and transfer it to exchanges. The report further states that the prosecutors have put a freeze on Do Kwon’s domestic properties, including apartments in Seoul and land in Gyeonggi Province, Hwaseong, and Taean.
While the other members of the Terra management team face asset freezes, Do Kwon’s situation is reportedly different. Prosecutors have not found any assets that can be seized from him, as he allegedly transferred a significant portion of his assets to overseas exchanges in the form of Bitcoin.
The crypto fraud scandal involving Terra and Luna has been making headlines since last year. Prosecutors have accused the management team of fraudulently raising funds from investors by promoting their digital currencies as an alternative to stablecoins. The team allegedly misrepresented the assets backing the digital currencies and exaggerated their expected returns, which led to massive losses for investors.
South Korean authorities have been cracking down on crypto-related fraud cases, and the Terra and Luna scandal is one of the latest cases. The incident serves as a reminder to investors to exercise caution when investing in digital currencies and to thoroughly research the project before investing.
Read more:
- Do Kwon Faces Over 100-Year Sentence In US, 40-Year Sentence In Korea
- Do Kwon Faces Transfer To Cramped Detention Area Only 8 Square Meters About 10 People With No Beds