Swiss prosecutors have taken a significant step in the ongoing legal saga surrounding Do Kwon, the co-founder of Terraform Labs, by freezing approximately $26 million worth of cryptocurrencies and US dollars believed to be associated with him and his associates.
Quick facts:
- Swiss prosecutors have frozen $26 million in assets tied to Terraform Labs co-founder Do Kwon, following requests from the US Federal Prosecutors Office and SEC.
- Do Kwon faces legal challenges, including a recent prison sentence and seizure requests from South Korean authorities.
- The asset freeze adds to the ongoing global investigation and highlights increased scrutiny of prominent figures in the cryptocurrency industry, including Sam Bankman-Fried.
The asset freeze comes as a result of requests made by the New York Federal Prosecutors Office and the Securities and Exchange Commission (SEC) in Switzerland.
Swiss prosecutors have reportedly seized $26 million in cryptocurrencies and US dollars that are allegedly linked to Do Kwon, Chang-joon Han (former CEO of Chai Corporation), Nicholas Platias (head of the TFL research team), and TFL Corporation.
These frozen assets were reportedly held at Sygnum Bank, a renowned financial institution in Switzerland and Singapore that facilitates investments in digital currencies.
The move to freeze these funds was made in response to requests from the New York Federal Prosecutors Office and the SEC in Switzerland, signifying a collaborative effort in the ongoing investigation, as per the local report.
Do Kwon’s Legal Woes Escalate
Do Kwon, once a prominent figure in the cryptocurrency industry, finds himself entangled in a web of legal troubles. He recently received a four-month prison sentence from the Basic Court in Podgorica for having a fake passport at the time of his initial arrest in Montenegro.
However, the sentence takes into account the time he has already spent in custody, meaning his actual jail time could be reduced to approximately one month.
South Korea Takes Aim
Do Kwon’s involvement in the LUNA/UST meltdown, which resulted in significant investor losses, has drawn the attention of various global agencies and authorities.
South Korean prosecutors have been actively pursuing legal action against him, seeking the seizure of approximately $176 million in cryptocurrencies and luxury assets allegedly belonging to him.
In May, the Seoul Southern District Court approved this seizure request. Furthermore, South Korean authorities are pushing for Do Kwon’s extradition to their country, where he could face a maximum prison sentence of 40 years if found guilty.
The United States has also expressed interest in his deportation, with the potential for even harsher penalties.
The freezing of $26 million in assets linked to Do Kwon and his associates by Swiss prosecutors represents a significant development in the ongoing legal battles surrounding him. This action highlights the global nature of the investigation and the collaboration among international law enforcement agencies.
As the case develops, it emphasizes the increased scrutiny that individuals in the cryptocurrency industry face, including former FTX CEO Sam Bankman-Fried.
The outcome of these legal proceedings will have far-reaching implications for the digital asset landscape, as regulators and authorities seek to enforce accountability and maintain market integrity.
As Do Kwon’s legal battles continue, the industry watches closely to see how this case may shape the future of the cryptocurrency ecosystem.
