South Korean authorities have reportedly frozen $104.4 million (140 billion won) from Terraform Labs co-founder Shin Hyun-seong for making profits through improper channels.
The freezing order approved by the Seoul Southern District Court was also charged with the offense of selling pre-issued Terra tokens* to investors.
*Part of tokens that have been mined (and distributed) before the coin's official launch date
Earlier, Shin's lawyer denied accusations that he sold Luna from the highest price level through illegal methods to gain a certain amount of profit.
In context, pre-indictment preservation of funds is one of the methods to prevent bad actors from disposing of stolen funds and resulting in more financial losses to investors.
In general, Shin is currently being investigated by South Korean authorities on two charges, namely generating profit by issuing internal tokens LUNA and TerraUSD (UST) and leaking customer transaction information of Chai, which is a payment application in Korea related to Terra.
In the meantime, the authorities are said to have made various efforts to resolve the Terra case since six months of his service was terminated following most of his victims facing a very large amount of losses.
As evidence, South Korean prosecutors ordered the co-founder to appear in court as part of an investigation into the company's collapse on November 14.
While in the first week of November, prosecutors accused Terra's co-founder Do Kwon of manipulating Terra's price.
