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Singaporean law enforcement has revealed that it has launched an official probe against defunct Terraform co-founder Do Kwon.
Singapore Police Launches Investigation
In an email sent on Monday, local Singaporean police revealed they had begun a probe connected to Do Kwon and his Terraform Labs. The emails claim that “investigations have commenced in relation to Terraform Labs” while mentioning that Do Kwon is not in Singapore.
Do Kwon is not in any dearth of legal trouble, considering the fact that he has faced lawsuits from multiple authorities and entities.
The investigations are related to one of the biggest catastrophes in the crypto market in 2022 - the collapse of the TerraUSD (UST)/LUNA ecosystem after the UST stablecoin lost its dollar peg. As a result, Terra Luna lost 99.9% of its value. The incident sent out shockwaves in the entire industry and led to billions of dollars worth of valuation being completely wiped out from the market. It also had a domino effect, with other crypto exchanges and firms that had been exposed to the stablecoin suffering dire consequences. Of these, crypto hedge fund Three Arrows Capital (3AC) and crypto lending platforms Voyager Digital and Celsius Network are the most notable.
The SEC Lawsuit
On February 16, the United States Securities and Exchanges Commission (SEC) named Do Kwon and Terraform Labs in a lawsuit, alleging that the former CEO knowingly committed fraud, namely a multibillion-dollar crypto asset securities fraud. The SEC probe, although criticized by many in the industry, had unveiled the fact that Kwon removed around 10,000 BTCs from the Terra platform and the Luna Foundation Guard (LFG) and then converted them to fiat currency. The Singapore police will undoubtedly look into this information further, especially since the SEC has alleged that Kwon has laundered over $100 million worth of Bitcoin even after the Terra platform collapsed.
Where Is Do Kwon?
Do Kwon has not commented on the recent allegations from SEC or the Singapore police.
The company and its founder have also been investigated by South Korea. The authorities of this Asian country had issued a warrant for Do Kwon’s arrest, and even sent police forces to Serbia in order to locate him. This highlights one of the main challenges of the situation - no one knows where he is. However, that has not prevented him from being quite active on Twitter, where he has been very vocal about the entire incident up until February.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.