Law enforcement officials in Switzerland reportedly seized approximately $26 million in bitcoin and other cryptocurrencies, believed to be linked to Terraform Labs and its co-founder, Do Kwon. Local media in South Korea revealed that the funds were confiscated from Sygnum, a crypto bank based in Zurich. The U.S. Securities and Exchange Commission is said to have played a significant role in this operation.
Crypto Assets Worth $26 Million Reportedly Confiscated in Switzerland, Tied to Terraform Labs and Co-Founder
Digital Asset, a South Korean news publication, has reported the seizure of approximately $26 million in cryptocurrency assets from an account linked to Terraform Labs and Do Kwon. The funds were held at Sygnum, a crypto bank based in Switzerland, and Swiss law enforcement authorities froze the assets following a request from the U.S. Securities and Exchange Commission (SEC).
In late April, reports surfaced regarding Kwon’s purported funds held at Sygnum Bank, with prosecutors in Seoul claiming that Terraform Labs and Kwon retained $100 million in crypto assets. Further allegations suggested that Kwon, or “someone under his direction,” transferred $29 million, leaving investigators in Seoul unable to trace the funds. Digital Asset, a news outlet, reveals that the frozen assets are reportedly associated with Kwon, Chang-joon Han (CEO of Chai), and Nicholas Platias (researcher at Terraform Labs).
In the meantime, Kwon has been found guilty of employing counterfeit travel documents and identification in Montenegro, resulting in a four-month prison sentence. During his time there, law enforcement agencies from the United States and South Korea are diligently working towards establishing an extradition agreement with Montenegro, aiming to bring Kwon back to face prosecution in either the U.S. or Seoul. Simultaneously, the developers behind the struggling Terra Classic ecosystem, which experienced a collapse in May 2022, are making efforts to resurrect the blockchain ecosystem and its native cryptocurrency, LUNC.
What are your thoughts on the ongoing developments surrounding the seizure of cryptocurrency assets tied to Terraform Labs and Do Kwon? Share your thoughts and opinions about this subject in the comments section below.