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Swiss Prosecutors Seize $26 Million From Terraform Labs Co-founder Do Kwon

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Seized Funds
Seized Funds

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Swiss prosecutors have taken control of approximately $26 million in digital assets and U.S. dollars that belonged to Do Kwon, the imprisoned co-founder of Terraform Labs (TFL).

This revelation came to light after a Korean media outlet reported on June 24 that Kwon had assets stored in a digital asset bank based in Switzerland, known as Sygnum.

Digital Assets Worth $26 Million Seized from Imprisoned Co-Founder of Terraform Labs, Do Kwon

Kwon, who is currently facing criminal prosecution in both South Korea and the United States, has been under investigation to trace his assets. Acting upon requests from the Securities and Exchange Commission (SEC) and Federal Prosecutors of New York, Swiss prosecutors froze the assets held by Kwon.

Earlier claims by South Korean investigators had suggested that none of Kwon’s assets were located within the country.

However, subsequent reports revealed that he had stored his digital assets in Sygnum Bank, which markets itself as the world’s first digital assets bank and operates branches in Switzerland, Singapore, and Abu Dhabi.

do kwon jailed

It is important to note that the frozen assets do not solely belong to Kwon. The assets also include holdings of TFL corporation, former CEO of Chai Corporation Han Chang-Joon, and former TFL research lead Nicholas Platias.

Surprisingly, the amount of frozen assets is double the previous estimates provided by prosecutors. Bloomberg reported that South Korean prosecutors initially believed that Kwon and his associates held over $13 million in Sygnum.

However, it seems that U.S. and Swiss prosecutors have discovered additional assets that were previously unidentified. The U.S. SEC had alleged that Kwon had sent 10,000 Bitcoins to a Swiss account, further complicating the situation.

Can Luna Investors Get Compensated?

This recent development holds potential hope for victims of the Terra Luna failure, which had caused a staggering $40 billion loss in the crypto market. With some of the frozen assets connected to this incident, these victims might anticipate compensation for their losses.

Meanwhile, Kwon and former TFL CFO Chang-Joon Han have faced imprisonment in Montenegro for their involvement in falsifying travel documents.

Despite their pleas of innocence, the Montenegrin Basic Court has found the founders guilty and sentenced them to four months in jail, which includes the 85 days they have already served in custody.

Given the relatively short duration of their imprisonment, Kwon may soon be extradited either to South Korea or the United States, as both countries are actively seeking his return to face criminal charges.

The case of Do Kwon and the seizure of his digital assets continue to captivate the attention of international authorities. The frozen assets, double the initial estimates, serve as a reminder of the complexity and global nature of financial investigations.

As the legal proceedings unfold, the victims of the Terra Luna failure eagerly await justice and the possibility of recovering their losses.

Montenegro Arrest Unveils Terra Protocol Creator’s Astonishing Passport Claim, Igniting Legal Controversy

After evading authorities for an extended period, Do Kwon was finally captured in Montenegro. Surprisingly, Kwon denied any awareness of the counterfeit Costa Rican passport discovered in his possession, casting additional doubts and complexities over the case.

Do Kwon LUNA

Kwon confessed to receiving the passport from a Singapore agency, which he had been introduced to by an unnamed friend. Throughout his global travels, he had been relying on the same forged document, unaware of its authenticity. “If I had suspected that it was a fake passport, I would not have travelled to many countries,” Kwon insisted during the hearing at the Podgorica District Court.

The arrest itself has been mired in controversy. Initially, Kwon’s bail application for a staggering $400,000 was granted, only to be revoked shortly after. In a surprising twist, the court later re-approved his bail application, leaving many perplexed by the unpredictable legal proceedings.

Adding to the intrigue, reports suggest that Kwon’s custody may be extended by six months as authorities deliberate on whether to extradite him to the United States or South Korea. The collapse of the Terra ecosystem last year has fueled speculation about his role in the catastrophic event, leading to widespread blame and mistrust.

Many came on Twitter to say that it was good news for Terra classic.

Kwon was found with a Belgian passport, leading prosecutors to suspect malicious intent due to the differing details. Prosecutor Chabotich urged appropriate punishment. Kwon requested personal responsibility, highlighting Han Chang-joon’s innocence.

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