Terraform Labs has been under the regulatory microscope ever since the demise of the company back in May 2022.
The company has continued facing one trouble after another and that is because of claims made against the company.
Surprisingly, Terraform Labs has not done much to save its face or reputation in the global crypto market. Instead, the co-founder and CEO of the exchange, Do Kwon continued running away from the law enforcement authorities.
Initially, there were just claims and allegations made against Terraform Labs and Do Kwon of money laundering. Instead of facing the claims and trying to provide evidence against them, Kwon kept running.
He initially flew off from South Korea where the very first case was registered against him by the South Korean prosecutors.
Later, it was revealed that Kwon had run away to Singapore so an arrest warrant was issued against him by Interpol.
Latest Investigation Launched by Singapore
As per the latest updates, Terraform Labs has come under the authorities’ radar from Singapore. The police authorities in Singapore are going after Terraform Labs launching an investigation against the platform.
The reports confirm that the investigation has been launched against Do Kwon and Terraform Labs. For reference, Terraform Labs was behind the launch of Terra USD Classic (USTC), a stablecoin, and Terra Luna Classic (LUNC), the platform’s native token.
The authorities are investigating the crash of Terraform Labs from back in 2022 which cost billions of dollars to investors from around the world.
The losses were so much that even some of the major firms from the crypto industry including Three Arrows Capital, a major crypto lending firm, went bankrupt.
Email by the Law Enforcers
The police authorities of Singapore have launched an all-out investigation against Do Kwon and the company to know exactly what led to the event.
The first thing that the Singaporean law enforcers have clarified is that throughout the developments, Do Kwon was not in Singapore.
Their preliminary investigations have eradicated confusion around the visit of Do Kwon to Singapore from South Korea after the Terraform Labs’ crash.
They have clarified that he was not hiding in Singapore when the matter was being investigated and South Korea was after him.
Why Singapore is Actively Investigating the Matter?
Singapore’s recent investigation may have raised many questions about the country’s involvement in the matter. The most important question is what has triggered Singapore authorities to investigate the matter.
The answer lies in the very existence of the Terraform Labs. It is true that Terraform Labs had a great influence over South Korean users. But it does not mean that it was based in the country.
Yes, the exchange has its offices in South Korea but its headquarters are based in Singapore, suggesting that the platform is originally from the respective country.
Even Do Kwon is a national from Singapore and he had been living in South Korea for the expansion of his business.
Customers Lost Over $40 Billion
Back in May 2022, as Terraform Labs crashed, it ended up resulting in a gigantic loss of $40 billion for investors.
Since then, South Korea, the US, Singapore, and many more countries are after the owner of Terraform Labs. It is the regulators that have gone after Do Kwon to bring him to court and extradite him to the US.
Do Kwon Stole 10,000 BTC
In addition to the above, the authorities have confirmed that he had been involved in fraudulent activities. He reportedly ended up withdrawing 10,000 BTC from the same platform.
As per the regulatory authorities, Do Kwon ended up laundering $100 million worth of cryptocurrencies and funds to the desired accounts.
Do Kwon is yet to defend himself in court about the crimes he has committed and the money he has stolen.