Swiss Authorities Freeze $26M Worth of Do Kwon, Terraform Labs Crypto Assets: Report

Swiss authorities have reportedly frozen roughly $26 million in Bitcoin and different cryptos tied to Terraform Labs, its founder Kwon Do-hyeong, and different key figures throughout the firm.

These crypto belongings had been saved within the Swiss-based digital asset financial institution Sygnum, in response to a report from South Korean information outlet Digital Asset on Saturday, citing unnamed authorities and investigators.

Per Digital Asset, Swiss authorities adopted requests from the U.S. federal prosecutors of New York and the Securities and Alternate Fee.

Decrypt has contacted the Workplace of the Lawyer Basic of Switzerland and can replace this text ought to we obtain a response.

This growth is the newest chapter in a saga that began with the collapse of Terraform Labs’ algorithmic stablecoin, UST, in Could 2022.

Kwon is accused by the U.S. and South Korean prosecutors of fraud, securities legislation violations, and several other different costs associated to the collapse of Terra. Whereas admitting that errors had been made, Kwon continues to argue he had no intent to deceive buyers.

Do Kwon sentenced to jail

Final week, Kwon and Chang-joon Han, the previous chief government officer of Terraform Labs, had been sentenced to 4 months in jail by a Montenegrin decide on costs referring to the forgery of journey paperwork.

The 2 had been arrested in March at Montenegro’s Podgorica Airport whereas making an attempt to fly to Dubai, as per the courtroom assertion. Throughout their arrest, authorities confiscated falsified paperwork together with two Costa Rican passports, two Belgian passports, and two identification playing cards.

Each Kwon and Han pleaded not responsible at their first courtroom listening to in Could. The Montenegrin higher courtroom determined to grant bail to every of them at $437,000, proposing home arrest beneath police supervision within the interim.

The following step for Kwon stays unclear. Each the U.S. and South Korea have sought to extradite him. In February, the U.S. Securities and Alternate Fee (SEC) charged Kwon and Terraform with defrauding U.S. buyers who bought Terra USD and LUNA tokens.