Native authorities in Singapore introduced that they’d opened an investigation into Do Kwon’s ties to Terraform Labs.
In keeping with a Bloomberg report, Singapore police despatched an e mail on March 6, saying, “An investigation has been initiated in reference to Terraform Labs.” The e-mail additionally added that the inquiry is “ongoing” and that Do Kwon is just not at the moment within the city-state.
Final month, on February 16, the US Securities and Trade Fee (SEC) accused Do Kwon and Terraform Labs of fraud in a brand new lawsuit.
Some voices within the crypto area have criticized the lawsuit as a means for the SEC to make use of stablecoins with future lawsuits. Business advocates have additionally referred to as the SEC’s comparability of property “wild.”
In the meantime, an SEC investigation revealed that Kwon siphoned off practically 10,000 bitcoins (BTC) from Terra Platform and Luna Basis Guard, which he ultimately exchanged for fiat. In complete, the SEC fees declare that Kwon laundered greater than $100 million price of bitcoins after the platform’s preliminary collapse.
On the time of writing, Dr Kwon has not commented. The co-founder of Terraform Labs has been lively on social media all through the scandal. Nonetheless, he has not tweeted since early February.
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The entire saga began again in Might 2022 when the stablecoin UST got here off its peg to the US greenback. This brought on the worth to drop to zero, inflicting a lack of round $40 billion within the digital asset market.
Terraform Labs can be beneath investigation by authorities in South Korea, the place a warrant was issued for Kwon’s arrest. South Korean police traveled to Serbia in an effort to find Kwon.
On February 15, South Korean prosecutors requested an arrest warrant for a neighborhood e-commerce govt accused of accepting LUNA to advertise Terra Labs.
