A Bloomberg report has confirmed that local authorities in Singapore have opened an investigation into Terraform co-founder Kwon Do-hyung popularly referred to as Do Kwon. The report which concerns an email sent by the Singapore police stated that investigations and inquiries are ongoing in relation to Terraform Labs, although the crypto kingpin is currently not in the city.
Markedly, Do Kwon went missing from his Singapore home last year after the International Criminal Police Organization (Interpol) issued a Red Notice, asking law enforcement agencies worldwide to help uncover the location of the fugitive and arrest him.
In his defense, the Terraform Labs boss claimed not to be hiding, according to him, he was “writing code in my living room” and “I’m making zero effort to hide.”
@stablekwon where you hiding fam? its okay you can dm me
— TraderSZ (@trader1sz) September 26, 2022
However, in December it was discovered that he registered his residential address in the Republic of Serbia, based on information from South Korean media reports.
Only last month, the United States Securities and Exchange Commission (SEC) indicted both Terraform Labs and Do Kwon for defrauding investors. This quest has received several oppositions claiming that the SEC is going after stablecoins, however, the regulator has revealed that Do Kwon laundered more than $100 million worth of Bitcoin (BTC) before the platform collapsed.
The securities watchdog spoke about the multi-billion dollar crypto assets securities fraud conducted by the cryptocurrency exchange. Specifically, the charges levied against Do Kwon and his company is the violation of anti-fraud registration and provisions of the Securities and Exchange Act.
The TerraUSD (UST) and the LUNA token were not left out of the case.
Terraform Implosion Destabilized the Crypto Ecosystem
Both tokens imploded in May 2022 and caused a huge loss of up to $40 billion in cryptocurrencies.
Additionally, many other crypto projects suffered different misfortunes due to their direct and indirect exposure to the company. Crypto lending platform Three Arrows Capital (3AC) which now plans to sell off its Non-fungible token (NFT) collection was one of the affected entities.
Voyager Digital, Babel Finance, and Celsius Network are also on the list of companies that suffered insolvency due to the Terraform implosion. Some of them subscribed to massive layoffs to keep their business afloat while the other group filed for bankruptcy protection against investors who had plunged their funds into projects.
