It’s been almost a year since the Terra collapse shook the crypto world, and the drama just keeps on coming! Now, news has surfaced that Singapore – the city-state where Terra founder Do Kwon used to reside – is on the hunt for the disgraced entrepreneur.
The Singaporean police have just announced that they’re launching an investigation into Do Kwon’s Terraform Labs.
According to a Bloomberg report, the police have confirmed that their inquiries are ongoing, but Kwon himself is not currently in the city-state.
Last month, the United States Securities and Exchange Commission (SEC) filed a lawsuit accusing Kwon and Terraform Labs of fraud. Some in the crypto space have criticized the SEC’s move as a way to target stablecoins in future lawsuits. And lawyers in the industry have gone so far as to call the SEC’s comparisons of assets “wild.”
The SEC probe allegedly uncovered that Kwon removed around 10,000 Bitcoin from the Terra platform, which he eventually converted to fiat. The SEC also claim that Kwon has laundered over $100 million worth of Bitcoin since the platform’s initial collapse.
Do Kwon hasn’t made any comment on the investigation yet, but he has been active on social media throughout the scandal. However, he hasn’t tweeted since the beginning of February. Maybe he’s too busy hiding out from the authorities?
The saga began back in May 2022 when the Terra USD (UST) stablecoin lost its peg to the U.S. dollar. The collapse of the Terra ecosystem caused a major implosion in the digital asset market, with losses of nearly $40 billion. And now, Terraform Labs is being investigated by authorities in South Korea as well, where a warrant was issued for Kwon’s arrest. South Korean police even traveled to Serbia in their efforts to locate him.
The situation has been made worse by the South Korean prosecutors’ request for a warrant to arrest a local e-commerce executive who is accused of accepting Terra (LUNA) in exchange for promoting Terra Labs.