Singapore Police Launch Investigation into Crypto Fugitive Do Kwon and Terraform Labs – Where is He?

cryptonews.com:

Singapore authorities have launched a probe into Do Kwon's Terraform Labs, the entity that developed the now-collapsed TerraUSD stablecoin.

According to a Monday report by Bloomberg, Singaporean police sent an emailed statement announcing that “investigations have commenced in relation to Terraform Labs.” It added that the inquiries are “ongoing,” and Kwon is not currently in the city-state.

The announcement comes less than a month after the US Securities and Exchange Commission (SEC) sued Terra founder Do Kwon and his organization Terraform Labs for securities fraud.

“[The SEC] today charged Singapore-based Terraform Labs PTE Ltd and Do Hyeong Kwon with orchestrating a multi-billion dollar crypto asset securities fraud involving an algorithmic stablecoin and other crypto asset securities,” the commission said at the time. 

The SEC also claimed that Kwon and Terraform Labs transferred over 10,000 Bitcoin out of their project and have been cashing out via a Swiss bank.

Kwon is the co-founder and CEO of Singapore-based Terraform Labs, the company that developed the TerraUSD stablecoin. The so-called algorithmic stablecoin was meant to have a constant $1 value via a mix of algorithms and trader incentives involving a sister token, Luna.

However, the stablecoin lost its dollar peg in May last year after a wave of sell-offs hit the crypto market. While Terraform Labs managed to partially repair the peg by purchasing $2B UST, the continued sell-off drained those funds, hyperinflated UST's sister token LUNA, and crashed the price of both LUNA and UST.

Following the catastrophic collapse of the Terra ecosystem, South Korean officials launched an investigation into the project as investors filed a complaint against Kwon. By September