South Korean officials have leveled accusations of capital markets law violations against a group of Terraform Labs personnel, including co-founder Daniel Shin.
Along with seven others, Shin faces charges of illegal trading, while two others are charged with breach of trust.
According to prosecutors, all the parties involved have ties to Terra.
Investigators found that everyone involved was aware that the algorithm was incapable of supporting UST and LUNA binding, but chose to withhold this information to promote their product.
The defendants’ assets, worth 246.8 billion won ($184.7 million), have been frozen by the prosecutor’s office.
Terra’s founder, Do Kwon, reportedly used the Swiss Sygnum Bank to legitimize 10,000 BTC in accordance with Korean law enforcement.
Before the lawsuit was filed, he managed to withdraw approximately $100 million, including legal fees.
Both South Korea and the US have requested that the remaining funds be frozen.
Kwon evaded Interpol for several months before being arrested on March 23rd in the Montenegrin capital after attempting to travel on a private jet using a fake Costa Rican passport.
Montenegrin prosecutors have charged Terraform Labs’ founder with using counterfeit passports and other identification documents.
Serbian authorities seized the €2.2 million duplex where Kwon had been hiding for six months prior to his arrest in Montenegro; the property was purchased by Kwon’s associate Han Chang-Joon while he was on the run.