Media: Swiss authorities freeze Do Kwon’s crypto assets worth $26 million

The Swiss government has blocked around $26 million in Bitcoin and other cryptocurrencies tied to Terraform Labs (TFL) and its CEO Do Kwon. South Korean media Digital Asset reports.

According to the agency, authorities complied with requests from the U.S. Securities and Exchange Commission (SEC) and the U.S. Attorney’s Office for the Southern District of New York.

Terraform Labs’ assets were held at the crypto bank Sygnum, based in Zurich.

It is claimed that the frozen funds belong to Kwon, the former CEO of Chai Corporation Han Chang-joon, the former head of TFL’s research group Nicolas Platias, and Terraform Labs itself.

In September 2022 in South Korea an arrest warrant for Do Kwon was issued along with five other employees on charges including violations of capital markets law.

On March 23, Montenegro police arrested an entrepreneur as he attempted to depart from Podgorica airport to Dubai with forged documents. In May he and former TFL chief financial officer Han Chang-joon pleaded not guilty.

South Korea has urged Montenegro to extradite Kwon to his homeland. The United States also seeks the extradition of the head of TFL, where he faces fraud charges brought by the SEC and the U.S. Attorney’s Office for the Southern District of New York.

In June, Kwon was released under house arrest, with a bail of €400 000 ($436 000).

Later, the court in Podgorica found the founder of TFL guilty of document forgery in an attempt to leave Montenegro. He was sentenced to four months in prison.