Summary
• On July 14, Swiss authorities seized $26 million in cryptocurrency and fiat from Terraform Labs and its co-founder Do Kwon.
• Most of the assets are linked to Terra-LUNA Crisis of 2022 when US SEC reported Do Kwon cashed out more than $100 million worth of Bitcoin.
• Do Kwon and Han Chang-joon were each given a four-month prison term in Montenegro, and they are expected to be extradited to South Korea where Do Kwon faces 40 years in jail.
Do Kwon Seized by Swiss Authorities
On July 14, Judge Jed Rakoff will issue a ruling on the application to dismiss the lawsuit against Do Kwon and Han Chang-joon. The two South Korean nationals had been accused by the U.S Securities and Exchange Commission (SEC) and New York Federal Prosecutors Office. For this reason, prosecutors in Switzerland have frozen $26 million in cryptocurrency and fiat owned by TFL, co-founder Do Kwon , ex-CFO Han Chang-Joon, and ex-TFL research head Nicholas Platias.
The money was held by digital asset bank Sygnum on behalf of Terraform Labs which is represented by Dentons – an elite legal firm. The funds were allegedly obtained during the Terra-LUNA crisis of 2022 when it was reported that Do Kwon had transferred 10,000 BTCs from his accounts into Sygnum’s account based in Switzerland. It is believed that he cashed out more than $100 million worth of Bitcoin at this time as well.
Prison Term for Do Kwon
A court in Montenegro ruled against the prosecution on June 19th which resulted in both DoKwon and Han Chang Joon being sentenced to four months’ imprisonment for attempting to board an aircraft using forged Costa Rican passports back in March. The Montenegrin High Court is now working towards extraditing them back to their home country – South Korea – where prosecutors have stated that if found guilty, DoKwom could face up to 40 years behind bars for his actions relating to the incident involving crypto fraud last year.
US SEC Complaint Against TFL Dismissal
In response to being charged with various allegations relating crypto fraud last year, Terraform Labs has taken action by submitting new paperwork with Dentons legal firm in order to get their complaint dismissed from the US SEC . On July 14th Judge Jed Rakoff will announce his decision regarding whether or not this motion will be granted or declined.
Extradition To South Korea
It appears that despite interest from U nited States authorities ,the Montenegrin government has decided it would be best for everyone involved if these two individuals return home rather than facing a trial overseas . As such they are now awaiting extradition proceedings which may take some time before they can finally be returned back home again after all this time away from their families .
Conclusion
The future remains uncertain for TFL as well as its founder ,DoKwom , but one thing is certain – justice must be served one way or another . No matter what happens next ,we can all agree that those responsible should face consequences for their actions no matter how much money they may have made off with during their criminal activities .
The future remains uncertain for TFL as well as its founder ,DoKwom , but one thing is certain – justice must be served one way or another . No matter what happens next ,we can all agree that those responsible should face consequences for their actions no matter how much money they may have made off with during their criminal activities .