Since Do Kwon and Terraform Labs were accused of engaging in fraudulent activity by the US Securities and Exchange Commission (SEC) a month ago, Singaporean authorities have launched an investigation into the company Kwon helped build. , Terraform Labs. According to the allegations made in the action filed by the SEC, Kwon stole around 10,000 bitcoins from the Terra y Luna Foundation Guard platform, which he later converted into fiat currency. The Securities and Exchange Commission (SEC) claims that Kwon has cleared over $100 million worth of bitcoins since the site’s original crash.

An email issued by the Singapore police on March 6 said that “investigations have been launched regarding Terraform Laboratories,” according to a Bloomberg report. Furthermore, the email stated that investigations are “ongoing” and that Kwon is not in the city-state at this time.

Several cryptocurrency industry participants have expressed their disapproval of the case on the grounds that it could pave the way for the SEC to target stablecoins in future litigation. Asset comparisons conducted by the SEC have even been called “wild” by lawyers working in the business.

The beginning of this whole affair dates back to May 2022, when the stablecoin known as Terra USD (UST) depegged from the US dollar. The subsequent demise of the Terra ecosystem was responsible for a huge implosion in the digital asset market, which resulted in losses of approximately $40 billion.

South Korean authorities have also conducted an investigation into Terraform Laboratories and an arrest warrant has been issued for Kwon in that country. In an attempt to identify Kwon, South Korean law enforcement officers headed for Serbia. On February 15, South Korean prosecutors filed a warrant to arrest a local e-commerce executive whom they accused of taking over Terra (LUNA) in exchange for promoting Terra Labs. The executive was suspected of being paid to market Terra Labs.

As of this writing, Kwon has not commented. Throughout the incident, the Terraform Labs co-founder has been quite active on social media. On the other hand, it’s early February and he hasn’t tweeted since.