US granted access to Terraform Labs founder’s SG filings

Daniel Shin (left) and Do Kwon, the two founders of Terraform Labs. Shin is the founder and current CEO of Chai Corporation. / Photo credit: Terraform Labs

A judge in the US has ruled that the Securities and Exchange Commission (SEC) can ask to see records from the Monetary Authority of Singapore (MAS) to help with the US regulator’s lawsuit against failed crypto firm Terraform Labs, Bloomberg reported, citing court records.

The decision follows a request from Terraform Labs and its founder, Do Kwon, to block the SEC from acquiring Singapore filings, including those from Luna Foundation Guard – a fund that helped Terraform Labs peg its stablecoin, TerraUSD, to the US dollar.

It’s still unclear what the SEC is specifically looking for from MAS.

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Kwon was recently charged by the US SEC with defrauding investors, after the exec was arrested in Montenergro. The regulator had also charged Kwon in February, saying that he was involved in a “multibillion-dollar crypto asset securities fraud.”

The founder was one of the main people behind TerraUSD, which lost its peg to the dollar in 2022, causing a massive US$42 billion loss in assets. Kwon is also facing investigations in South Korea and Singapore.