Kwon was behind the TerraUSD stablecoin, which was meant to have a constant US$1 value in a complex arrangement with sister token Luna. The edifice fell apart in May, worsening a US$2 trillion crypto rout, pushing a range of digital-asset firms toward insolvency and causing consternation at regulators globally.
He and five others have been accused of breaching South Korea’s capital-markets law. Terraform Labs has rejected the charges and said the case has become “highly politicized.”
The Chosun Ilbo newspaper reported that prosecutors in Seoul have frozen an additional 56.2 billion won (US$40 million) of assets they claim are Kwon’s, bringing the total to about 95 billion won.
Kwon on Twitter said “I don’t know whose funds they’ve frozen, but good for them, hope they use it for good.” He didn’t immediately reply to an email seeking comment.
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Prosecutors on Thursday confirmed a local report that one of the people accused, surnamed Yu, had been arrested on charges including violations of the capital-markets law, fraud and breach of duty related to market manipulation.
