Do Kwon’s Terraform Labs Investigated By Singapore Police: Bloomberg

Summary:

• Singapore’s police disclosed an ongoing investigation into Do Kwon’s blockchain company and Luna developer Terraform Labs.
• The company is the subject of several probes by South Korean authorities and US regulators.
• Interpol and South Korean law enforcement issued warrants for Founder Do Kwon’s arrest after Terraform shaved off over $40 billion from investors’ pockets.

Do Kwon’s blockchain company Terraform Labs is the subject of ongoing investigations by Singapore police following the firm’s monumental implosion in May 2022, Bloomberg reported on Monday.

In an emailed statement, authorities said “investigations have commenced in relation to Terraform Labs”. Singapore police noted that the probe is ongoing and authorities plan to conduct an exhaustive examination of the factors or persons behind Terra’s crash.

Also, local police confirmed that Co-Founder Do Kwon was not in Singapore at the time of the statement. Kwon’s whereabouts remain a mystery to crypto participants and law enforcement agencies. Initially, reports claimed that Kwon was living in Singapore at the time of Terra’s crash in May.

Later, speculators guessed that Kwon fled the island nation and relocated to Serbia. Although the wanted Kwon was active on Twitter and appeared virtually in interviews, his exact location was unknown at press time.

Terra’s implosion reportedly shook the broader crypto industry as market leaders like Bitcoin (BTC) and Ether (ETH) dipped drastically in price after the crash. The collapse of tokens issued by Terraform like TerraLuna (LUNA) and TerraUSD (UST) fell to pennies, wiping out over $40 billion in retail and institutional investments.

Interpol issued a red notice and ordered his arrest, declaring Kwon a fugitive in 195 countries worldwide. South Korean authorities invalidated Kwon’s passport in a bid to uncover his whereabouts. The Founder was asked to appear before lawmakers and testify to Terra’s crash, although Kwon failed to answer the summon.

Do Kwon Charged By SEC For Fraud

In February, the U.S. Securities and Exchange Commission (SEC) filed civil charges against Do Kwon for allegedly defrauding investors and customers. The SEC further accused Kwon of marketing and selling unregistered securities.

The suit joined a basket of charges and allegations against Kwon from South Korean authorities, private entities, and regulators across different jurisdictions.

Following the crash, watchdogs and crypto critics across borders leveraged the incident as a rallying point to lobby for tighter crypto restrictions. Some lawmakers in the U.S. have called for a total ban on crypto and an exclusion from the traditional banking system, citing failures like Terra, FTX, and 3AC,