Singapore police have launched an investigation into Terraform Labs, the company co-founded by South Korean entrepreneur Do Kwon that blew up after the collapse of its stablecoin TerraUSD, Bloomberg reported. The investigation is ongoing and Kwon is not currently in Singapore.
Kwon and Terraform Labs were accused of fraud by the US Securities and Exchange Commission (SEC) last month. In addition to this, Kwon is facing arrest in South Korea for violating the country’s capital markets laws, among other alleged offenses.
The SEC also stated in its lawsuit that Kwon and Terraform Labs transferred over 10,000 Bitcoin out of their failed project and converted some of the tokens into cash via a Swiss bank.
Kwon developed the TerraUSD stablecoin, which was intended to maintain a constant value of US$1 through algorithms and trader incentives involving a sister token called Luna. However, the project failed in May 2022, resulting in a US$40 billion crash in the cryptocurrency.
Kwon’s whereabouts have been unclear after South Korea issued a warrant for his arrest and he left Singapore. South Korea has stated that Kwon is subject to an Interpol red notice.
See also: UST, lies, and Hodlnaut: How a rising star fell back to earth
Editing by Thu Huong Le and Arpit Nayak
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