After the US authorities, the Singapore police also initiated action against Terraform labs & its founder Do Kwon over the fraud that he did with the Terra crypto project.
Terraform labs is an engineering team behind the Terra blockchain. Do Kwon was the founder of Terraform Labs. Luna coin & UST stablecoin was running on the Terra blockchain. According to the Terra team, Luna & UST were integrated via a protocol, to maintain the value of each UST stablecoin equal to $1. In May 2022, Luna & UST stablecoin collapsed badly under high volatility in the Crypto market.
On 6 March 2023, a Bloomberg report confirmed that Singaporean police started investigating Terraform labs & Do Kwon.
So far no new information has been shared by Singapore authorities about Kwon but police have confirmed that Do Kwon isn’t in the city-state. Reportedly Kwon had fled for Singapore in April 2022, before heading to Dubai and then Serbia. So far no one has come to know about the Kwon’s location.
SEC vs Terra founder Kwon
In Feb 2023, The United States Securities and Exchange Commission (SEC) initiated fraud charges against Kwon. The SEC agency noted that Terraform labs & Kwon misled crypto investors by providing false information about the Terra project.
The SEC agency alleged that Kwon & his team secured huge profits before the downfall of the whole project & also there was no protocol between UST & Luna, instead, a third party company was managing the price of UST stablecoin.
In the present time, Kwon is wanted in his own country South Korea. After the collapse of the Terra project, he renewed his project and renamed the project with “Terra 2.0”.
However many reports claimed that Kwon did a very big fraud with the crypto investors with the help of Luna coin but Kwon never admitted any kind of allegations and also bravely said that his experiment of protocol based stablecoin was successful & getting traction among other crypto projects.
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