TechGround

Terraforms Labs’ stablecoin Terra, which was supposed to maintain a 1:1 peg to the U.S. dollar, crashed on May 7, 2022.
A group of crypto investors in South Korea filed a lawsuit against Kwon. (May 19, 2022)

The South Korean government ordered to nullify Kwon’s passport, intensifying pressure on the crypto entrepreneur to return to his country. (October 5, 2022)
Kwon said that South Korean prosecutors’ charges against him were not legitimate and were politically motivated. (October 18, 2022)

A local media outlet reported on April 13 that Kwon sent 8 million won (~$7 million) to Kim & Chang, a legal firm in South Korea, before the collapse of Terra and Luna. This suggests that Kwon was aware of the crisis and expected a legal case that might happen.
A judge in the U.S. denied Kwon and Terraform’s call that they had asked the Securities and Exchanges Commission (SEC) to withdraw the request to access documents regarding Terraform and Luna Foundation Guard (LFG) from the Monetary Authority of Singapore. (April 18, 2023)
Terraform’s co-founder Shin was indicted in connection with the crash of TerraUSD and Luna on charges including violations of capital markets law in South Korea, fraud and embezzlement. South Korean prosecutors froze assets tied to the people worth about 246.8 billion won ($184.7 million). A spokesperson of the Korean prosecutors confirmed to TechGround that Shin’s first trial will be held on May 26.

South Korean prosecutors’ joint financial crimes team director Sung-han Dan said in an interview with The WSJ: “Investigating the case in South Korea would be the most efficient way of bringing justice,” as most key accomplices and evidence linked to the Terraform incidents are based in South Korea.
This week, South Korea froze about 233.3 billion won ($176 million) of Kwon’s assets and properties, the Seoul prosecutor’s office confirmed to TechGround. A South Korean court has banned the sale of Kwon’s house, cars and financial assets such as securities, bank deposits and cryptocurrencies on cryptocurrency exchanges.

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