South Korean Authority Confiscates Terra LUNA Founder's Property Worth IDR 2.3 Trillion

The property assets found by Terra LUNA were confiscated by the South Korean government. (Photo; Doc. Bitnovo)

JAKARTA - Terraform Labs is a Singapore-based blockchain technology company and developed a protocol called Terra. This protocol aims to create a stable digital currency that can be used for global transactions. Terra also has its own cryptocurrency called LUNA. Both fell more than 99 percent in May 2022, causing heavy losses among investors.

In addition, Terraform Labs is also facing major legal issues in South Korea, where some of its founders came from. The latest report states that South Korean authorities accuse Terraform Labs executives of insider trading by utilizing classified information about Terra's cooperation with related companies. Shin Daniel Hyun-Song who is Terraform Labs co-founder.

For additional information, insider trading is an illegal practice where someone buys or sells shares or other assets using information that is not available to the public. This can harm other investors who do not know this information and disrupt a fair and transparent market.

Oleh karena itu, Otoritas Korea Selatan telah menyita sejumlah aset sejumlah asset senilai 160 juta dolar AS (Rp2,3 triliun) yang sebagian besar berupa properti milik eksekutif Terraform Labs sebagai langkah pencegahan agar aset tersebut tetap tersedia untuk persidangan.

Previously, Terraform Labs CEO, Do Kwon, was arrested in Montenegro about two weeks ago for using fake documents to hide his identity. After his true identity was confirmed, the United States and South Korea requested Kwon's extradition.

Currently, it is not clear which country will be a priority for the Montenegro authorities. However, South Korean authorities took other measures, by confiscating property belonging to Terraform Labs executive after the rejection of a request for arrest of Shin "Daniel" Hyun-Song, who is one of the company's founders.

According to KBS News, one of South Korea's local media, a number of real estates belonging to Hyun-Song and five other Terraform Labs employees were confiscated. The act of confiscation of these assets is carried out as a precautionary measure, to ensure all assets are available for trial if they are found guilty.

Hyun-Song is suspected of carrying out insider trading, which causes illegal profits worth 100 billion won or nearly 76 million US dollars (Rp1.1 trillion). The total value of the confiscated assets reached 210 billion won or about 160 million (Rp 2.3 trillion), with most consisting of real estate. One of the unnamed Terraform Labs executives has property worth 31 million US dollars (Rp 463 billion) which was confiscated, while Hyun-Song has almost doubled property.

If the allegations about insider trading carried out by Hyun-Song are proven, then the confiscation of the real estate will not be enough to cover up the amount he has obtained illegally, because there is still an uncountable profit of 11 million US dollars (Rp164 billion).