South Korean Officials Confiscated More Than $100 million Fund from Terra Luna Co-founder

According to local media, the government of South Korea has seized more than $100,000 from Shin Hyun-seong, the co-founder of Terra (LUNA), a stablecoin issuer that collapsed.

The confiscation is worth 140 billion won

Hyun-Seong has been alleged to have earned 140 billion won ($104 million) by selling LUNA (currently LUNC) at a high price before its meltdown, according to a report published by South Korean publication YTN on Thursday.

“Pre-indictment preservation is a preliminary measure that prevents a suspect from arbitrarily disposing of criminal proceeds before being handed over to trial so that the amount of damage can be compensated later,” according to the report.

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He is also the general manager of Chai Corporation, a payments platform and fintech company.

Another accused to Hyun-Seong

In the report, Hyun-seong has not only been accused of making illicit profits by selling LUNA, but also of peddling Chai customer information to Terra.

Meanwhile, South Korean prosecutors claim Hyun-Seong violated capital laws by secretly selling tokens before the project collapsed. However, his lawyer denies the accusations, stating that they are untrue.

“The report to the effect that CEO Shin Hyun-seong realized profits by disposing of Luna at the peak, or that he made profits in other fraudulent ways, is different from the truth,” the lawyer said.

Prior to this, Interpol issued a red notice calling on law enforcement to arrest Kwon if they spotted him, a move Kwon described as highly political.

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Despite not turning himself in, Kwon has accepted responsibility for Terra and UST’s downfall in an interview last month, saying it was entirely his fault.

“Whatever issues existed in Terra’s design, its weakness [in responding] to the cruelty of the markets, it’s my responsibility and my responsibility alone,” he said.

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Jamilatul Mahmudah

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