The police force of Singapore has started to investigate Terraform Labs, a company co-founded by crypto fugitive Do Kwon.
An email statement seen by Bloomberg stated that the inquiries connected to this case are still underway, and Kwon is not present in the country at this time. Several sources allege that Do Kwon switched up his hideouts in the preceding months, with some potential stops including Russia, Dubai, Singapore, and Seychelles.
The latest reports suggested his whereabouts may be in Serbia. South Korea sent a delegation consisting of high-ranking members of the Justice Ministry to the Balkan nation last month in pursuit of Kwon, who is also being sought out by Interpol.
The US Securities and Exchange Commission (SEC) declared recently that Terraform Labs, as well as Do Kwon, are thought to have carried out a huge fraud by supplying and dealing in unregistered securities with the usage of digital currencies. The SEC has claimed that this scam caused colossal losses for both individual and institutional investors. It additionally accused Terraform Labs of creating false promises of being partnered with a South Korean mobile payment app, which was actually an effort by Kwon to cheat people out of their money and use it for his own personal gain.
Terraform Labs vs. SEC accusations
Last summer, the South Korean authorities conducted an investigation into him due to accusations he gifted tokens to family members in order to bypass certain taxation laws; those assets were said to be used for buying properties.
The police, who are concerned about the activities of Terraform Labs, has advised all customers to exercise due diligence before entering into any transactions or agreements with them. They also warned members of the public to be aware of potential risks associated with investing in digital tokens or cryptocurrencies.
At the age of 31, Do Kwon created the TerraUSD stablecoin, whose purpose was to maintain a steady $1 value using a combination of algorithms and trader incentives that included a sister token, Luna. The whole structure collapsed in May 2022, which further harmed the crypto market leading to the downfall of many digital asset companies.