Swiss authorities have seized digital assets worth over $26 million linked to Terraform Labs and its former executives. This action was taken in response to a request from the US Securities and Exchange Commission (SEC) and the New York Federal Prosecutor's Office. The confiscated crypto assets were previously held at Zurich-based Sygnum Bank and belonged to Do Kwon and Han Chang-joon, Terraform Labs' former CEO and CFO, respectively. Bloomberg's previous reports suggested that Kwon had stored $13 million in Sygnum Bank, but the latest disclosure from June 8 revealed that Kwon had moved an additional $29 million of cryptocurrency out of the Swiss account. The seizure follows the collapse of Terraform Labs' crypto project in May 2022, and authorities in the US and South Korea are pursuing separate charges against Kwon and his associates.
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Swiss authorities have confiscated $26 million worth of cryptocurrency linked to Terraform Labs. The Collapse Of Terraform Labs And Kwon's Troubles
In May 2022, Terraform Labs and its algorithmic stablecoin project, Terra-Luna, experienced a significant collapse, resulting in a loss of $40 billion in market capitalization and sending shockwaves throughout the wider crypto market. In September 2022, South Korean authorities charged Kwon with violating its Capital Markets Act and issued a warrant for his arrest. Shortly after, the International Criminal Police Organisation (Interpol) issued a red notice for Kwon, instructing law enforcement agencies worldwide to locate and detain him on charges of fraud. Swiss authorities have confiscated $26 million worth of cryptocurrency linked to Terraform Labs.
Kwon was also indicted by U.S. Federal prosecutors with multiple counts of securities fraud, wire fraud, commodities fraud, and conspiracy. Both South Korea and the U.S. are currently seeking Kwon's extradition. Kwon and his associate Han Chang-Joon were sentenced to four months in jail by a Montenegro district court for forging travel documents. Kwon was arrested in March in Podgorica, the Montenegro capital, while attempting to travel to Dubai with a forged passport.
Despite being released on bail in June, Kwon and his associate have remained in custody, with their detention time to be included in the four-month sentence. Notably, Kwon and his associates reportedly fled multiple countries in 2022 after Terraform Labs' project failure.
As investigations continue and more assets are seized, the full scope of the fallout from Terraform Labs' implosion becomes clearer. The pursuit of justice in this complex, cross-border case involving crypto-assets and high-profile individuals remains ongoing.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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