• Singaporean authorities have launched an investigation into Terraform Labs co-founder Do Kwon.
• The US Securities and Exchange Commission (SEC) has accused Kwon and Terraform Labs of fraud in a new lawsuit.
• The SEC alleges that Kwon has laundered over $100 million worth of Bitcoin since the collapse of the platform.
Investigation into Terraform Labs Co-Founder
Local police in Singapore sent an email on Monday saying they have begun a probe connected to Do Kwon’s Terraform Labs. This follows a lawsuit filed by the United States Securities and Exchange Commission (SEC) accusing Kwon and Terraform Labs of fraud.
SEC Allegations
The SEC probe uncovered that Kwon removed around 10,000 Bitcoin from the Terra platform and the Luna Foundation Guard, which he eventually converted to fiat. In total, the SEC alleges Kwon has laundered over $100 million worth of Bitcoin since the initial collapse of the platform.
Terra Ecosystem Collapse
This entire saga has its roots back in May 2022 when the Terra USD (UST) stablecoin lost its peg to the U.S. dollar. The subsequent collapse of the Terra ecosystem caused a major implosion in the digital asset market, with losses of nearly $40 billion.
South Korea Involvement
Terraform Labs has also been investigated by authorities in South Korea, where a warrant was issued for Kwon’s arrest. South Korean police traveled to Serbia in their efforts to locate Kwon. On Feb. 15, South Korean prosecutors requested a warrant to arrest a local e-commerce executive who they accused of accepting Terra (LUNA) for promoting Terra Labs..
Do Kwon Response
At the time of writing, Kwon has made no comment on any aspect surrounding this story or his involvement with it specifically. The Terraform Labs co-founder had been active on social media throughout this scandal but hasn’t tweeted since February 2021