Terraform Labs Linked To Crypto Fugitive Do Kwon Being Investigated By Singapore Police

Zinger Key Points
  • Do Kwon's crypto scandal deepens with an investigation by Singapore police into Terraform Labs.
  • Terraform Labs and Do Kwon face multiple charges in cryptocurrency fraud cases.

The Singaporean police on Monday announced that they have started an investigation related to Terraform Labs Pte, the company co-founded by cryptocurrency fugitive Do Kwon.

In a statement, police revealed that they have begun inquiries into Terraform Labs, adding that the investigations are still ongoing, Bloomberg reported. The statement also confirmed that Kwon is not currently in Singapore.

Kwon, who is facing charges in his home country of South Korea over the loss of $60 billion in digital assets that he created, is also accused of fraud by the US Securities and Exchange Commission.

The TerraUSD stablecoin LUNC/USD, which Kwon developed, was intended to maintain a constant value of $1 through a combination of algorithms and incentives involving a sister token called Luna LUNA/USD.

Also read: Bitcoin, Ethereum, Solana And Shiba Inu Drop: Major Reasons For Growing Fear In Crypto

However, the project failed catastrophically in May 2022, worsening the crypto-market downturn and contributing to the demise of several digital asset companies.

After South Korea issued a warrant for his arrest, Kwon left Singapore, where Terraform Labs was based.

South Korea has stated that Kwon is the subject of an Interpol red notice.

According to the SEC lawsuit, Kwon and Terraform Labs moved more than 10,000 Bitcoin BTC/USD out of their failed project and exchanged some of the tokens for cash through a Swiss bank.

Kwon used to be active on Twitter, where he sometimes made light of the controversy surrounding him, even trolling the "cops" and posting a picture of a gun with the caption "pew pew." However, he has not tweeted since Feb. 1.

The collapse of the TerraUSD stablecoin had a significant impact on the cryptocurrency market, and the fallout from the project's failure is still being felt in the industry.

Next: Bitcoin Liquidity Unaffected By Silvergate Fiasco, But Market Depth Remains Low

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Posted In: CryptocurrencyNewsMarketsDo KwonInterpolSingaporeSouth KoreaSwiss bankTerraform Labs PtetwitterUS Securities and Exchange Commission
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