Singapore opens investigation into Terraform Labs

Singapore police began investigating Terraform Labs and said Do Kwon is currently not in the country.

Do power

Do Kwon – Co-Founder, Terraform Labs

Singapore law enforcement agencies are said to have begun investigating Terraform Labs, the notorious blockchain project co-founded by Do Kwon. Right now, Quan is still at large.

Authorities also believe the 31-year-old developer is not hiding in their territory.

The latest allegations against Terraform Labs

In an email notification, the Singapore police explain “An investigation into Terraform Labs has been launched,” adding that inquiries are “ongoing.”

The collapse of the agency’s native token LUNA and algorithmic stablecoin UST has been one of the darkest events in crypto last year. Despite being designed with a fixed $1 valuation, the stablecoin lost its peg to the U.S. dollar in May 2022 and plummeted below the target level.

Aware of the confusion, investors began selling off their UST reserves en masse. This resulted in more LUNA being minted to stabilize the free fall, significantly increasing the original token supply. Ultimately, both assets lost nearly all of their value in just a few days, costing investors billions and leading to a broad market decline that lasted for months.

Investors and many loss-making institutions blamed Terraform Labs co-founder Do Kwon for the disaster. However, he was not cooperative, and he is said to have left South Korea to escape responsibility for his alleged fraud.

According to some sources, he has frequently changed hiding places over the past few months. Among them, Russia, Dubai, Singapore and Seychelles are some of the possible destinations. Singapore law enforcement agencies revealed in an email that he is currently not in the Asian country.

Recent reports suggest Quan’s current location may be Serbia. A South Korean government delegation led by a senior Justice Ministry official arrived in the Balkan country last month to search for Kwon, it was revealed. Not only that, Kwon was even hunted down by the International Criminal Police Organization (aka Interpol).

SEC charges

The U.S. Securities and Exchange Commission (SEC) recently accused Terraform Labs and Do Kwon of orchestrating a massive scam by using digital currencies to issue and sell unregistered securities. The agency argued that the scheme caused huge financial losses to retail and institutional investors.

They also accused Terraform Labs of making false statements and promising to work with the South Korean mobile payment app. Instead, Kwon misled investors into withdrawing their funds, which they then used for personal gain.

South Korean officials launched a special investigation into him last summer for allegedly gifting tokens to family members to evade tax oversight. These assets are said to have been used to purchase the property.

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According to CryptoPotato

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