Swiss authorities froze approximately $26 million in Bitcoin and other cryptocurrencies related to Terraform Labs, its founder Kwon Do-hyeong, and other key company figures.

According to a report by South Korean media digital assetswhich cited anonymous authorities and investigators, the cryptocurrencies were stored in the Swiss-based digital asset bank Sygnum.

Agree with digital assetsSwiss authorities followed requests from federal prosecutors in New York and the United States Securities and Exchange Commission.

Decrypt has contacted the Swiss Public Prosecutor’s Office and will update this article if it receives a response.

This development is the latest chapter in a saga that began with the collapse of Terraform Labs’ algorithmic stablecoin UST in May 2022.

Do Kwon is charged by U.S. and South Korean prosecutors with fraud, violation of securities laws, and other charges related to Terra’s collapse. While admitting mistakes were made, Kwon goes on to say that he had no intention of misleading investors.

Do Kwon sentenced to prison

Last week, Kwon and Chang-joon Han, the former CEO of Terraform Labs, were sentenced to four months in prison by a Montenegrin judge on charges related to forging travel documents.

The pair were arrested in March at Podgorica airport in Montenegro as they attempted to fly to Dubai, according to the court statement. During his arrest, the authorities seized false documents, including two Costa Rican passports, two Belgian passports and two identity cards.

Kwon and Han pleaded not guilty in their first hearing in May. Montenegro’s high court has decided to grant each of them $437,000 bail, offering house arrest under police supervision in the meantime.

The next step for Kwon remains unclear. The United States and South Korea have requested his extradition. In February, the U.S. Securities and Exchange Commission (SEC) accused Kwon and Terraform of defrauding U.S. investors who purchased Terra USD and LUNA tokens.