An investigation has been launched by Singapore authorities into Terraform Labs Pte, the business co-founded by crypto fugitive Do Kwon. In an emailed statement on Monday, the force stated, “investigations have been initiated in regard to Terraform Laboratories” and added the probes are “ongoing”. It further stated that Kwon is not currently residing in the city-state.
The US Securities and Exchange Commission charged Kwon and Terraform Labs with fraud last month. South Korea is also prosecuting Kwon for the $60 billion erasure of digital assets he generated.
The 31-year-old created the TerraUSD stablecoin, designed to maintain a constant $1 value through algorithms and trader incentives using a sister currency, Luna. The structure collapsed in May 2022, aggravating a crypto-market downturn and contributing to the demise of many digital-asset firms.
Kwon’s location became unknown after South Korea filed an arrest notice for him, and he fled Singapore, where Terraform Laboratories was based. According to South Korea, Kwon, who previously denied involvement, is the subject of an Interpol red notice.
According to the US SEC’s lawsuit, Kwon and Terraform Labs transferred over 10,000 Bitcoin from their failed project and converted part of the tokens into cash through a Swiss bank.
