Law enforcement in Singapore has reportedly launched an investigation into Terraform Labs. Terraform Labs is a notorious blockchain project co-founded by cryptocurrency fugitive Do Kwon.
Officials also presume the 31-year-old developer is not hiding in the city-state.
Latest from Terraform Labs
In an email announcement seen by Bloomberg, Singapore police said“An investigation has been launched in connection with Terraform Labs,” adding that the investigation is “ongoing.”
The demise of the organization’s native token, LUNA, and its algorithmic stablecoin, UST, was one of the darkest events in the cryptocurrency industry last year. The stablecoin, which was supposed to have a $1 fixed valuation, lost its peg against the US dollar in May 2022, well below its price target.
Realizing the confusion, investors began selling UST reserves en masse. This led to more LUNA being minted to stabilize the free fall, greatly increasing the native coin supply. Ultimately, both assets lost virtually all of their value within days, causing billions in investor losses and months of widespread market decline.
Failed investors and numerous institutions have accused Terraform Labs co-founder Do Kwon of being involved in the collapse. However, he was reluctant to cooperate and supposedly left South Korea to escape the consequences of the alleged fraud.
According to some sources, he changed hiding places frequently in the past few months, with Russia, Dubai, Singapore and the Seychelles being some of the potential destinations. An email clarified that it is currently not within the borders of any Asian city-state.
According to recent reports, his current location may be in Serbia.As crypto potato A delegation of South Korean authorities led by a senior Justice Ministry official revealed visited I went to Balkan country last month to look for Kwon. hunted by the International Criminal Police Organization (known as INTERPOL).
SEC indictment
Recently, the U.S. Securities and Exchange Commission (SEC) defendant Terraform Labs and Do Kwon organized a huge scam by offering and selling unregistered securities using digital currency. The agency suggested that the scheme caused huge financial losses to individual and institutional investors.
It also accused Terraform Labs of making false claims and promises of affiliation with South Korean mobile payment applications. Instead, Kwon was misleading investors into draining their funds and later hiring them for personal gain.
South Korean authorities conducted a special investigation into him last summer, claim He gifted his family with tokens to circumvent taxation rules. Those assets were probably used to purchase real estate.
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