The Switzerland government has reportedly seized $26 million in crypto connected to Terraform Labs and its embattled founder, Do Kwon. According to the report, the Swiss government is working together with the US SEC who’s been prosecuting Do Kwon. The seized assets include Bitcoin and other crypto assets.
Terraform Labs is a blockchain technology company founded in 2018 by Do Kwon and Shin Hyun-Seong. The company is headquartered in Singapore and raised more than $200 million in funds from investment firms such as Lightspeed Venture Partners, Galaxy Digital, and DeFiance Capital when it started.
Terraform Labs is the developer of the Terra blockchain, which is a decentralized payment network that uses algorithmic stablecoins to facilitate payments. Terra’s stablecoins are pegged to fiat currencies, such as the US dollar, and are designed to maintain a stable value.
In May 2022, the Terra blockchain experienced a major crash that wiped out billions of dollars in value. The crash was caused by a sudden sell-off of Terra’s stablecoin, TerraUSD (UST). After the crash, the co-founder, Do Kwon has been on red alert from security authorities around the world including South Korea, the US, and Montenegro.
After being charged with the company in February 2023 by the SEC for fraud, he was arrested in March 2023 in Montenegro. In April, it was declared that the US and South Korea wanted him for missing assets in his custody worth millions of dollars. His residence in Belgrade was also seized by Serbian Police in the same month.
The co-founder, who was brought to a Montenegro court in May, was granted bail on a €400,000 bond pending his trial. Meanwhile, the US and South Korea still have suits against him. The court processes in Montenegro have prevented his extradition to the US.