December 11, 2023

Singapore launches investigation into Terraform Labs and its founder

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Singapore launches investigation into Terraform Labs and its founder

Singapore Law Enforcementbegan an investigation into the activities of Terraform Labs, as well as its CEO. Bloomberg reports this with reference to an email from the police.

Founder of the company Do Kwon (Do Kwon) nowis located outside of Singapore and its exact location is unknown, Singapore police say. Bloomberg writes that Terraform Labs has not yet responded to a request for comment on the situation.

In February, the Securities and Exchange CommissionThe United States (SEC) sued Terraform Labs and Do Kwon for “organizing a multibillion-dollar fraud.” The SEC statement emphasizes that Do Kwon and the company he organized, Terraform Labs, offered and sold “an interconnected set of digital securities in illegal transactions.” The regulator noted the collapse of the algorithmic stablecoin UST, the creation of the USTC token and the related cryptocurrency LUNC. 

Also in February, information appeared thatRepresentatives of South Korean law enforcement agencies went to Serbia in search of the CEO of Terraform Labs and asked the government for assistance in extradition. According to investigators, immediately after Do Kwon's arrest warrant was issued in September 2022, he fled from Singapore to Dubai and then to Serbia, where he is currently believed to be hiding.