Switzerland Freezes Terraform Labs and Do Kwon Assets Worth $26M

Investing

Published: June 26, 2023 10:15 pm

Do Kwon, founder and former CEO of Terraform Labs, saw his crypto assets frozen by Swiss prosecutors, Digital Asset reported. The authorities seized $26 million worth of cryptocurrency funds belonging to Kwon and other Terraform senior executives, reportedly on the request of the US Securities and Exchange Commission (SEC).

Swiss Prosecutors Freeze Crypto Funds Belonging to Top Terraform Executives

Swiss authorities have reportedly frozen roughly $26 million in crypto funds tied to the collapsed Terraform Labs and its top executives. The firm’s leaders who saw their assets frozen include Terraform Labs CEO Do Kwon, CFO Han Chang-joon, and former head of research Nicholas Platias.

The move came following requests from the US federal prosecutors in New York and the Securities and Exchange Commission (SEC). Per the reports, the crypto funds were held in Switzerland-based digital asset bank Sygnum.

The action follows April reports which suggested that prosecutors in South Korea detected a notable amount of “criminal proceeds” associated with Terraform Labs that were deposited into a Swiss bank. In turn, the prosecutors asked overseas authorities to seize those funds. Later that month, the plaintiffs indicted Daniel Shin, Terraform co-founder, and nine others on several allegations, including breach of trust, violation of the capital markets law, fraud, and more.

Do Kwon Sentenced to 4 Months in Prison

Terraform Labs was a blockchain firm that crumbled in May 2022 after its algorithmic stablecoin TerraUSD and its sister token LUNA collapsed, eradicating more than $40 billion in crypto market cap. Kwon, the co-founder of Terraform, has repeatedly denied accusations against him, claiming he had no intention to defraud investors.

After going missing for several months, Kwon was arrested by authorities in Montenegro in March, where he is still being held. Last week, a court in Montenegro sentenced Kwon to four months in prison, accusing him of forging travel documents.

Now, what will happen with the 31-year-old remains to be seen, given that both US and South Korean authorities seek to extradite him and put him on trial for his wrongdoings related to the Terraform Labs collapse. Han Chang-joon was also sentenced to four months in prison in Montenegro after being found guilty of the same charges.

This article originally appeared on The Tokenist

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