Local authorities in Singapore announced they had begun a probe connected to Do Kwon’s Terraform Labs.
According to a Bloomberg report, Singaporean police sent an email on March 6, which said, “investigations have commenced in relation to Terraform Labs.” The email also added that the inquiries are “ongoing,” and Do Kwon is not currently in the city-state.
Last month, on Feb. 16, the United States Securities and Exchange Commission (SEC) accused Kwon and Terraform Labs of fraud in a new lawsuit.
Some voices in the crypto space have criticized the lawsuit as a way for the SEC to go after stablecoins with future lawsuits. Lawyers in the industry have even called the SEC’s comparisons of assets “wild.”
Meanwhile, the SEC probe uncovered that Kwon removed around 10,000 Bitcoin (BTC) from the Terra platform and the Luna Foundation Guard, which he eventually converted to fiat. In total, the SEC alleges Kwon has laundered over $100 million worth of Bitcoin since the initial collapse of the platform.
At the time of writing, Kwon has made no comment. The Terraform Labs co-founder has been active on social media throughout the scandal. However, he has not tweeted since the beginning of February.
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This entire saga has its roots back in May 2022 when the Terra USD (UST) stablecoin lost its peg to the U.S. dollar. The subsequent collapse of the Terra ecosystem caused a major implosion in the digital asset market, with losses of nearly $40 billion.
Terraform Labs has also been investigated by authorities in South Korea, where a warrant was issued for Kwon’s arrest. South Korean police traveled to Serbia in their efforts to locate Kwon.
On Feb. 15, South Korean prosecutors requested a warrant to arrest a local e-commerce executive who they accused of accepting Terra (LUNA) for promoting Terra Labs.