Swiss authorities freeze the crypto assets of Do Kwon and Terraform Labs

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Swiss authorities have taken steps to freeze around $26 million in bitcoin (BTC) and other cryptocurrencies linked to Terraform Labs, its founder, Do Kwon, and other key people involved in the project’s collapse. from algorithmic stablecoin Terra.

More trouble for Do Kwon

Swiss authorities have reportedly frozen around $26 million in bitcoin (BTC) and other cryptocurrencies belonging to Terraform Labs founder Kwon Do-hyeong and other company figures.

The crypto-assets were stored under the custody of Sygnum Bank, a Swiss-based crypto-friendly bank.

The crypto asset freeze is the latest development in a series of events that unfolded after the collapse of Terraform Labs algorithmic stablecoin UST in May 2022. Do Kwon was at the center of the scandal and is currently being held accountable. over $40 billion in losses by investors.

Montenegro Interior Minister Filip Adzic claimed that Kwon was arrested at Podgorica airport using false documents.

The arrest marked a significant turn of events and Kwon faced charges related to fraud, securities law violations and other offenses related to Terra’s collapse.

However, Kwon claimed he was unaware of the passport forgery as he received the documents from trusted agencies. In all of these ordeals, Kwon pretends to be innocent, though he acknowledges that mistakes were made.

As the suspected mastermind behind the crash which resulted in major losses for investors, Kwon has drawn the attention of various international agencies and authorities.

South Korean prosecutors have filed a lawsuit, seeking the confiscation of around $176 million worth of cryptocurrencies and luxury assets belonging to him. In May, the Seoul Southern District Court approved the foreclosure request.

The freezing of crypto assets is a response to requests from US security watchdogs. Regulators are currently taking legal action against Kwon and others associated with Terraform Labs to seek justice.

While awaiting trial, Kwon was recently granted a bail application by a judge in Montenegro, allowing him to remain free under house arrest.

The problem continues

A week ago, Do Kwon, along with Chang-joon Han, the former CEO of Terraform Labs, were sentenced to four months in prison by a Montenegrin judge. The charges against them relate to the falsification of travel documents.

Authorities seized several forged documents during the arrest, including two Costa Rican passports, two Belgian passports and two identity cards, according to the court statement.

After pleading not guilty in their first hearing in May, Kwon and Han were granted bail of $437,000 each by the Montenegrin high court. The court has offered house arrest under police surveillance while their next steps are being determined.

The future of Kwon’s legal status remains uncertain as both the United States and South Korea have expressed interest in extraditing him.

The involvement of global agencies and authorities, along with requests for extradition and asset seizures, demonstrate a growing determination to hold parties accountable for their actions in the cryptocurrency space.

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