Do Kwon, the founder of Terraform Labs and the cryptocurrency Terra Luna, has been in the news recently over allegations of fraud and embezzlement in South Korea. Kwon was indicted on charges of fraud and embezzlement for manipulating the LUNA token’s price, wiping billions of dollars from the crypto market. According to recent news, Singapore authorities have launched an investigation into Terraform Labs, the cryptocurrency company founded by Do Kwon, a South Korean entrepreneur and crypto fugitive. The investigation follows reports that Kwon had fled South Korea after being wanted in the cryptocurrency market.
Singapore Police Dives Deeper Into Terraform Labs
In a recent development that has caught the attention of the crypto world, the Singapore police have launched an investigation linked to Terraform Labs Pte. For those unfamiliar with Terraform Labs, it is a company co-founded by Do Kwon, a prominent figure in the crypto industry who is currently on the run from the authorities.
In an emailed statement sent out on Monday, the Singapore police confirmed that they had begun inquiries into Terraform Labs. While the investigation is still ongoing, it’s worth noting that Kwon is not currently in Singapore.
This news has sent shockwaves throughout the crypto community, as Terraform Labs is a well-known player in the space. The company is responsible for developing various crypto projects, including Mirror Protocol, which has gained a lot of attention in recent months.
Do Kwon Is Still Running Amid Multiple Charges
As expected, this news from the Singapore authority has sparked a lot of speculation about what could have prompted the investigation. Some experts believe that it may be related to the alleged fraudulent activities that Kwon has been accused of, while others think it could be part of a wider crackdown on crypto-related activities in Singapore.
The US Securities and Exchange Commission (SEC) has made a groundbreaking move by charging both Terraform Labs and Do Kwon with participating in a massive crypto asset securities fraud worth billions of dollars. The charges relate to the promotion of cryptocurrencies as securities to investors, with the SEC alleging that Terra and Kwon were involved in an elaborate scheme that involved multiple collaborators.
According to the SEC, Kwon’s charges primarily centre around securities fraud, including the unregistered offering of securities and other violations related to securities. Do Kwon is alleged to have transferred more than 10,000 Bitcoin from the company and Luna Foundation Guard crypto asset platform accounts. The SEC claims that following Terraform Labs’ collapse in May 2022, Kwon converted some of the Bitcoin into cash through a Swiss bank account.
To keep the crypto assets outside of the custody of crypto exchange platforms, Kwon is said to have transferred the Bitcoin into a cold or unhosted wallet. It’s worth noting that Kwon is currently on Interpol’s Red Notice list and is being pursued by South Korean authorities.
As the case continues to unfold, it’s clear that the crypto industry will continue to face regulatory scrutiny, and investors and companies must take steps to ensure they are operating within the boundaries of the law. It remains to be seen how the case will play out, but one thing is clear: the SEC‘s move is a strong signal that regulators are taking a tougher stance on fraudulent activities in the crypto space.
