The Singapore police launched an investigation against Terraform Labs and its founder Do Kvon, writes Bloomberg with reference to the email received from law enforcement agencies.
The Singapore Police report says that the head of the Terra project is now not in the country, his exact location is unknown.
The native of South Korea Kwon founded the Terraform Labs blockchain platform and was the main developer of the UST algorithmic stabelcoin and the Luna cryptocurrency (Luna) binding to the US dollar rate. Both tokens depreciated in May 2022, which led to large losses for the entire market. In particular, the Three Arrows Capital hedge fund closed, and the Voyager Digital and Celsius Network Cryptotes declared bankruptcy.
Last year, Do Kvon moved from South Korea to Singapore – the place of registration of his project Terraform Labs. The South Korean authorities began an investigation into the collapse of his platform, issued a warrant for him, and Interpol put him on the international wanted list. However, Kwon fled from Singapore to Dubai, after which his trace was lost.
In December, the South Korean authorities found out that Kvon was hiding in Serbia and turned to Belgrade with a request to assist in the investigation. The head of Terra himself repeatedly stated in social networks, which was not hiding, but did not reveal the location.
In February 2023, the US Securities and Exchange Commission (SEC) accused Terraform Labs and its founder in organizing a fraud scheme. According to the regulator, Do Kvon and his assistants brought 10000 bitcoins from the Terra project and in May 2022 cashed some of them in the amount of $ 100 million through Swiss banks.