Terraform Labs’ co-founder is under scrutiny in Singapore

South Korean authorities investigating Terraform Labs ordered Kwon’s detention. South Korean police searched Serbia for Kwon.

Singaporean authorities announced the launch of an investigation against Do Kwon’s Terraform Laboratories.

According to a Bloomberg article, Singaporean police issued an email on March 6 stating that “investigations against Terraform Laboratories have begun.”

The email further said that the inquiries are “ongoing” and that Do Kwon is not in Singapore at the moment.

In a new action filed on February 16 of last month, the United States Securities and Exchange Commission (SEC) accused Do Kwon and Terraform Laboratories of fraud.

Several commentators in the cryptocurrency community have denounced this case as a precursor to future SEC litigation against stablecoins.

Industry attorneys have even described the SEC’s asset comparisons as “crazy.”

In the meanwhile, the SEC investigation revealed that Kwon took around 10,000 Bitcoin from the Terra platform and the Luna Foundation Guard, which he ultimately converted to fiat currency.

After the original failure of the network, Kwon allegedly laundered over $100 million worth of Bitcoin, according to SEC charges.

Do Kwon has made no statement as of this writing. The co-founder of Terraform Labs has been active on social media during the whole incident.

But he has not tweeted since February’s commencement.This whole affair began in May of 2022, when the stablecoin UST was decoupled from the U.S. dollar.

This resulted in the price falling to zero, which precipitated a near $40 billion loss on the digital asset market and a huge implosion.

South Korean officials are also investigating Terraform Laboratories, and an arrest order was issued for Kwon. In an attempt to find Kwon, police from South Korea headed to Serbia.

On February 15, South Korean prosecutors sought an arrest warrant for a local e-commerce executive whom they allege of receiving LUNA in exchange for promoting Terra Labs.