Swiss authorities have reportedly seized more than $26 million worth of bitcoin and other digital assets linked to Terraform Labs and its former executives. The move is the latest in a series of legal fallout after Terraform Labs’ encryption project collapsed in May 2022.
The seized crypto assets were previously deposited at Zurich-based Sygnum Bank and belonged to Do Kwon and Han Chang-joon, the bank’s former CEO and chief financial officer. News outlet Digital Asset reported separately. Swiss authorities took the action at the request of the New York U.S. Attorney’s Office and the U.S. Securities and Exchange Commission (SEC).
Notably, the amount seized was $26 million, double the amount previously reported by Bloomberg, which said Kwon had $13 million in Sygnum Bank. The June 8 disclosure also stated that Kwon had moved another $29 million in cryptocurrency out of Swiss accounts.
The seizure comes as U.S. and South Korean authorities continue to file separate charges against Kwon and his associates following the fiasco of Terraform Labs and its various projects.
The Crash of Terraform Labs and Trouble with Kwon
Terraform Labs and its algorithmic stablecoin project Terra-Luna crashed in May 2022, wiping $40 billion off its market cap and sending ripples through the broader cryptocurrency market.South Korean authorities then A warrant for his arrest was issued for violating the Capital Markets Act.
Shortly after, Interpol (Interpol) issued a red notice for South Korean citizenship. Essentially an international arrest warrant directing law enforcement agencies around the world to locate and detain him on fraud charges.
U.S. federal prosecutors also indicted Kwon on multiple counts of securities fraud, wire fraud, commodity fraud and conspiracy. Both South Korea and the United States are currently seeking Kwon’s extradition.
Kwon and his colleague Han Chang-Joon Prosecuted by the District Court of Montenegro for falsifying travel documents. The co-founders of Terraform Labs are Montenegrin capital while trying to travel to Dubai with a fake passport.
despite being At present, the two are still in custody, and the detention time is counted into the four-month sentence. Notably, Kwon and his associates reportedly fled several countries in 2022 following the failure of the Terraform Labs project.
As the investigation continues and more assets are seized, the full extent of the Terraform Labs implosion has become clearer. It remains to be seen how the pursuit of justice will continue in this complex cross-border case involving crypto assets and high-profile individuals.
Disclaimer: This article is for informational purposes only.It does not provide or is intended to be used as legal, tax, investment, financial or other advice.