On Friday, a local report revealed that Terra, a South Korean cryptocurrency company, is currently under investigation by prosecutors for alleged fraud and embezzlement involving billions of Korean WON (KRW). The authorities handle the matter with the utmost professionalism and diligence.
Kwon Dohyung, the esteemed CEO of Terra, and his esteemed management team have been accused of duping investors and amassing a staggering sum of 414.5 billion Korean WON, which translates to a whopping $350 million, through the use of virtual currency Terra (Luna). These allegations are serious and require a thorough investigation to ensure justice is served.
According to the prosecution, Dohyung is believed to have gained a criminal profit of 91.4 billion KRW, equivalent to $81 million. Additionally, Shin Hyun-Seong, a co-founder and former CEO of Chai, allegedly collected $137 million, while the remaining seven Terra employees were accused of sharing $150 million. These figures have been presented professionally by the prosecution.
As a crucial aspect of the ongoing investigation, prosecutors diligently monitor the assets of all parties involved in the Terra scandal to seize any illicit profits gained. In this regard, the authorities have already imposed a seizure on the Seoul apartment owned by Hyun-Seong and other properties, including land and vehicles. Such measures are essential in ensuring that justice is served and those who have engaged in fraudulent activities are held accountable for their actions.
The Terra CEO’s case presents a complex scenario: the estimated value of assets that could be confiscated and seized amounts to zero, despite collecting hundreds of millions in criminal proceeds. The prosecution has proposed that Dohyung may have converted a substantial portion of his assets into virtual currencies, such as Bitcoin, and transferred them to overseas asset exchanges. This presents a challenging situation for all parties involved, and the legal proceedings will require careful consideration and analysis.
As a result, the South Korean regulatory bodies have formally requested Binance, the leading global exchange, to take measures to prevent Dohyung from withdrawing his digital assets.
In September of last year, it was reported that Dohyung, the CEO of Terra, allegedly attempted to cash out 3,333 units of Bitcoin (BTC) worth almost $100 million. This occurred the same day Korean authorities issued an arrest warrant against him. Despite these allegations, the Terra CEO has denied any involvement in such actions.
