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Crypto Assets of Do Kwon and Terraform Labs Frozen by Swiss Authorities

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Swiss authorities have taken action to freeze approximately $26 million in bitcoin (BTC) and other cryptocurrencies associated with Terraform Labs, its founder, Do Kwon, and other key individuals involved in the collapsed Terra algorithmic stablecoin project.

More trouble for Do Kwon

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

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

The crypto-asset freeze is the latest development in a series of events that unfolded after the collapse of the algorithmic stablecoin of Terraform Labs, UST, in May 2022. Do Kwon was at the center of the scandal and is currently responsible for more than $40 billion in investor losses.

Montenegro’s interior minister, Filip Adzic, alleged that Kun was arrested at Podgorica airport using forged documents.

The arrest was a major turn of events, and Kwon faced charges of fraud, securities law violations, and other crimes related to Terra’s crash.

However, Kwon claimed that he was not aware of the passport forgery because he had received the documents from trusted agencies. In all of these ordeals, Kwon claims he is innocent, despite admitting wrongdoing.

As the alleged mastermind behind the crash that led to huge losses for investors, Kwon has attracted the attention of many international agencies and authorities.

South Korean prosecutors have launched legal action, seeking to forfeit nearly $176 million in cryptocurrency and luxury assets owned by him. In May, the Seoul South District Court granted approval of this forfeiture request.

The crypto-asset freeze is in response to requests from US security guards. Regulators are currently taking legal action against Kwon and other players associated with Terraform Labs to seek justice.

While awaiting trial, Kwon recently secured a bail petition from a Montenegrin judge, allowing him to remain free under house arrest.

The problem persists

A week ago, a Montenegrin judge sentenced Do Kwon, along with Chang Jun Han, former CEO of Terraform Labs, to four months in prison. The charges against them revolve around falsifying travel documents.

The 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 they pleaded not guilty during the initial court hearing in May, Kwon and Han were released on bail of $437,000 each by the Supreme Court of Montenegro. The court suggested house arrest under police supervision while their next steps were decided.

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

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

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