Swiss prosecutors have reportedly frozen $26 million in cryptocurrencies and US dollars tied to Terraform Labs’ co-founder – Do Kwon, and some of his associates.
The former crypto mogul purportedly stored those assets at Sygnum Bank. According to the US SEC, he used a Swiss banking institution to cash out 10,000 BTC after the LUNA/UST collapse in 2022.
Do Kwon’s Troubles Pile up
As reported by a Korean media outlet, the Swiss officials froze the funds at the request of the New York Federal Prosecutors Office and the Securities and Exchange Commission (SEC) in Switzerland. According to the information, the $26 million worth of crypto and USD are not owned only by Kwon.
Other individuals affected by the seizure are Chang-joon Han (former CEO of Chai Corporation), Nicholas Platias (who worked as a head of the TFL research team), and TFL Corporation.
The frozen assets were stored at Sygnum Bank – a financial institution based in Switzerland and Singapore that enables customers to invest in digital currencies. The US SEC claimed earlier this year that Kwon cashed out over $100 million worth of BTC in the months after the infamous crash using the services of a Swiss bank. Many suggested that Sygnum Bank was that entity.
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The move comes a week after the Basic Court in Podgorica sentenced Kwon to four months in prison. The South Korean developer was found guilty of carrying a forged passport when initially arrested in Montenegro.
It is worth mentioning that the sentence includes the period he had spent in custody from March 23 until June 15, meaning his actual jail time could be approximately a month.
South Korea’s Actions
Blamed as the main culprit in the LUNA/UST meltdown last year that caused colossal investor losses, Kwon had become a target for multiple global agencies and authorities. Prosecutors in his homeland have also launched a bashing manifest, requesting the seizure of around $176 million in crypto and luxurious items belonging to him. The Seoul Southern District Court approved the appeal in May.
South Korean prosecutors have also insisted Kwon should be extradited to the Asian country and face justice there. He could receive a maximum prison sentence of 40 years if found guilty.
The US has also requested his deportation, with the possible punishment being even harsher.
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