Authorities in Switzerland have reportedly frozen crypto assets tied to former Terraform Labs CEO Do Kwon and other top figures within the cornered company.
Kwon, who was recently sentenced to four months in a Montenegrin prison, stored the assets in Swiss-based digital asset bank Sygnum.
More Troubles For Do Kwon
Problems for Terraform Labs co-founder Do Kwon keep piling up.
According to a recent report from South Korean publication Digital Asset, Swiss authorities froze $26 million worth of crypto assets reportedly belonging to Kwon, Terraform Labs, Chang-joon Han (former CEO of Chai Corporation), and Nicholas Platias (who worked as a head of the TFL research team). The news outlet indicates that these authorities were following requests from the Securities and Exchange Commission (SEC) and the U.S. federal prosecutors of New York.
Prosecutors in South Korea and the United States previously claimed that Kwon transferred 10,000 BTC to a Swiss bank, later identified as Sygnum. Moreover, the SEC stated that the former cryptocurrency mogul allegedly cashed out more than $100 million in bitcoin within months after the catastrophic collapse of Terraform Labs’ algorithmic stablecoin, UST, via the services of the said Swiss bank.
Do Kwon Slapped With A 4-Month Prison Sentence
Just last week, a Basic Court in Montenegro’s capital Podgorica sentenced Kwon and his associate Chang-joon Han to four months in jail after they were found guilty of document forgery. The pair has been in custody since March, when they were apprehended in Montenegro while trying to flee to Dubai.
After their arrest, authorities seized fake documents, including two Costa Rican passports, two Belgian passports, and two identity cards.
Leading up to Kwon’s detention in Montenegro, the former executive claimed he was “not on the run,” even as South Korean authorities commenced a global search for him, including requesting Interpol for a red notice. Authorities in both South Korea and the U.S. have requested his extradition to face criminal charges related to the implosion of the multi-billion-dollar Terra empire in May 2022, which resulted in several related bankruptcies and substantial loss of market capitalization.