Local authorities in Singapore have announced that they have opened an investigation into Do Kwon's Terraform Labs. According to Bloomberg, the Singapore police sent an email on March 6 in which they said they had "opened an investigation into Terraform Labs." The email added that the investigation was "ongoing" and that Do Kwon was not currently in the city-state.
Last month, on February 16, the U.S. Securities and Exchange Commission (SEC) charged Kwon and Terraform Labs with fraud in a new lawsuit.
Some voices in the cryptocurrency space have criticized the lawsuit as a way for the SEC to go after stablecoins through future lawsuits. Industry lawyers even called the SEC's comparison of assets "crazy."
At the same time, the SEC investigation found that Kwon removed about 10,000 bitcoins, From the Terra platform and the Luna Foundation Guard, which he eventually converted to fiat currency. In total, Kwon laundered more than $100 million worth of bitcoin since the platform’s initial crash, the SEC said. At the time of writing, Kwon had not yet commented. The Terraform Labs co-founder has been active on social media throughout the scandal. However, he hasn't tweeted since early February. The roots of this whole story can be traced back to May 2022, when the Terra USD (UST) stablecoin lost its peg to the U.S. dollar. The subsequent collapse of the Terra ecosystem led to a major implosion in the digital asset market, with losses of nearly $40 billion.
Terraform Labs was also investigated by South Korean authorities, who issued a warrant for Kwon's arrest. South Korean police went to Serbia to look for Kwon.
On Feb. 15, South Korean prosecutors applied for the arrest of a local e-commerce executive they accused of accepting Terra (LUNA) to promote Terra Labs.
