Terraform Labs (TFL), a renowned cryptocurrency company, faces further legal troubles as Swiss prosecutors have taken action to freeze approximately $26 million in digital assets and U.S. dollars owned by the imprisoned co-founder, Do Kwon. The assets were stored in Sygnum, a digital asset bank headquartered in Switzerland.
Previous Asset Freezes
This is not the first time that Do Kwon’s assets have been subject to freezing orders. In April 2023, the Seoul Southern District Prosecutors’ Office froze $5.36 million in assets belonging to Do Kwon. Subsequently, in May 2023, a Seoul court authorized the seizure of Do Kwon’s assets worth a staggering $176 million.
SEC’s Involvement and Allegations
In addition to the asset freezes, the U.S. Securities and Exchange Commission (SEC) has also charged Terraform Labs and Do Kwon with orchestrating a multi-billion dollar crypto asset securities fraud. The charges revolve around the manipulation of an algorithmic stablecoin and other crypto asset securities.
Terraform Labs and Do Kwon’s Legal Battle
The legal battle surrounding Terraform Labs and Do Kwon has garnered significant attention within the cryptocurrency industry. As the co-founder of TFL, Do Kwon played a prominent role in the company’s operations. However, recent developments have resulted in legal actions being taken against him.
Asset Seizure in Switzerland
The latest asset seizure in Switzerland demonstrates the global reach of the legal actions against Do Kwon. Swiss prosecutors, in collaboration with international authorities, have successfully frozen approximately $26 million in digital assets and U.S. dollars belonging to the Terraform Labs co-founder. This seizure further complicates the financial landscape for both Do Kwon and Terraform Labs.