Source: Terraform Labs
Swiss prosecutors have frozen approximately $26 million worth of Bitcoin and other cryptocurrencies connected to Terraform Labs, the company behind the failed Terra-Luna stablecoin project. The frozen assets are reportedly held in Sygnum, a Swiss digital asset bank.
The move comes after a court order was issued in the United States, where Terraform Labs and its executives are facing charges of fraud and securities law violations. The order requires Sygnum to freeze the assets and transfer them to an escrow account managed by an international law firm.
Terraform Labs became notorious in May 2022 when its Terra-Luna stablecoin lost its peg to the US dollar and collapsed, wiping out billions of dollars in investor value. The company’s CEO, Do Kwon, has denied any wrongdoing and has said that mistakes were made in the management of the project, but that there was no intention to deceive investors.
Kwon and former Terra financial chief Han Chang-Joon were arrested in Montenegro in March on charges of forging travel documents. They were sentenced to four months in jail, but have since been released pending an appeal.
The legal proceedings involving Terraform Labs and its executives are still in progress. The Swiss prosecutors’ decision to freeze the company’s assets is a significant development in the case and could have implications for the cryptocurrency industry as a whole.
Read More: Switzerland freezes US$26 million in crypto held by Terraform Labs and Do Kwon
The frozen assets include approximately 26,200 Bitcoin and other cryptocurrencies.
The order to freeze the assets was issued by a court in the Southern District of New York.
Signum is a Swiss digital asset bank that is licensed by the Swiss Financial Market Supervisory Authority (FINMA).
The escrow account where the assets will be held is managed by an international law firm that has not been named.
Terraform Labs and its executives are facing charges of fraud, securities law violations, and other related offenses in both the United States and South Korea.
Kwon has denied any wrongdoing and has said that mistakes were made in the management of the Terra-Luna project, but that there was no intention to deceive investors.
Read More: Gemini Announces UK Launch of Ethereum Staking Program
Kwon and Han were arrested in Montenegro in March on charges of forging travel documents. They were sentenced to four months in jail, but have since been released pending an appeal.
The Swiss prosecutors’ decision to freeze the company’s assets is a significant development in the case and could have implications for the cryptocurrency industry as a whole.
