Terraform’s Do Kwon under investigation by the Singapore Police

Singaporean law enforcement has revealed that it has launched an official investigation against the defunct Terraform co-founder Do Kwon.

Singapore Police are investigating

In an email sent Monday, local Singapore police revealed they had launched an investigation related to Do Kwon and his Terraform Labs. The emails claim that “investigations have begun regarding Terraform Labs,” while stating that Do Kwon is not in Singapore.

Do Kwon has no shortage of legal troubles considering he has faced lawsuits from multiple authorities and entities.

The studies are related to one of the crypto market’s biggest catastrophes 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 shockwaves throughout the industry and resulted in billions of dollars in valuation being completely wiped from the market. It also had a domino effect, with other crypto exchanges and companies exposed to the stablecoin severely impacted. 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 U.S. Securities and Exchanges Commission (SEC) named Do Kwon and Terraform Labs in a court case, alleging that the former CEO knowingly committed fraud, namely multi-billion dollar crypto asset fraud. The SEC probe, though criticized by many in the industry, had revealed that Kwon had removed approximately 10,000 BTCs from the Terra platform and the Luna Foundation Guard (LFG) and then converted them into fiat currency. Singapore police will no doubt investigate this information further, especially since the SEC has alleged that Kwon laundered more than $100 million worth of Bitcoin even after the Terra platform collapsed.

Where is Do Kwon?

Do Kwon has not commented on the recent SEC or Singapore police allegations.

The company and founder have also been investigated by South Korea. The authorities of this Asian country had issued an arrest warrant against Do Kwon and even sent police to Serbia to track him down. This highlights one of the main challenges of the situation – no one knows where he is. However, that hasn’t stopped him from being quite active on Twitter, where he was very vocal about the whole incident until February.

Disclaimer: This article is for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial or other advice.

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