Local authorities in Singapore announced that they have launched an investigation that is connected to Do Kwon’s Terraform Labs.
According to a Bloomberg report, Singapore Police sent an email on March 6 stating: “investigations have begun in relation to Terraform Labs.” The email also added that the consultations are “ongoing” and that Do Kwon is not currently in the city-state.
Last month, on February 16, the United States Securities and Exchange Commission (SEC) charged Do Kwon and Terraform Labs with fraud in a new lawsuit.
Some voices in the crypto space have criticized this lawsuit as a way for the SEC to go after stablecoins with future lawsuits. Industry lawyers have even called the SEC’s asset comparisons “wild.”
Meanwhile, the SEC investigation found that Kwon removed around 10,000 Bitcoin (BTC) from the Luna Foundation’s Terra and Guard platform, which he eventually converted into fiat. In total, the SEC’s allegations claim that Kwon has laundered more than $100 million worth of Bitcoin since the initial collapse of the platform.
At the time of writing, Do Kwon has not made any comments. The Terraform Labs co-founder has been active on social media throughout the scandal. However, he hasn’t tweeted since early February.
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This entire saga has its roots in May 2022, when the UST stablecoin fell from its peg to the US dollar. This caused the price to crash to zero, which subsequently caused a huge implosion in the digital asset market with a loss of almost $40 billion.
Terraform Labs has also been investigated by authorities in South Korea, where an arrest warrant has been issued for Kwon. South Korean police traveled to Serbia in their efforts to locate Kwon.
On February 15, South Korean prosecutors requested an arrest warrant for a local e-commerce executive who they accused of accepting LUNA to promote Terra Labs.
