Singapore police begin investigation into Do Kwon

In Singapore, police have begun an investigation into Terraform Labs (TFL) and its CEO Do Kwon. Bloomberg, citing a mailing list, reports this.

In the statement from law enforcement, it says that the head of TFL is currently outside the city-state. His exact whereabouts are unknown.

In December 2022, media citing the prosecutors’ office of South Korea reported that Do Kwon is hiding in Serbia. Later, representatives of the Ministry of Justice and the supervisory agency clarified that these claims were not false.

The collapse of the Terra ecosystem affected the solvency of major players in the industry, including the crypto-lending platform Celsius and the hedge fund Three Arrows Capital. The devaluation of LUNA and algorithmic stablecoin UST also inflicted significant losses on users of Anchor Protocol.

The situation around the project drew the attention of regulators in South Korea. The activities of TFL attracted the attention of the Southern District Prosecutor’s Office. In September 2022, a court issued an arrest warrant for Do Kwon and five others.

The head of TFL said that he is not on the run and is cooperating with law enforcement. In September, Bloomberg reported that Interpol had issued a red notice for his arrest. 

In October, Do Kwon again stated that he was not on the run, but he refused to disclose his whereabouts. He added that he had not seen an arrest order, and had obtained all information from the media.

Earlier, in February 2023, the U.S. Securities and Exchange Commission charged TFL and Do Kwon with orchestrating a multi-billion-dollar securities fraud.