HomeNEWSSingapore authorities launches investigation into Terra collapse

Singapore authorities launches investigation into Terra collapse


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As per emerging reports, authorities in Singapore has commenced an investigation into the crash of Terra project. According to a report, the authorities want to uncover the circumstances that led to the collapse of the project as well as the alleged involvement of its co-founder, Do Kwon.

It is noteworthy that the collapse of the Terra project has, over time, been described as one of the factors that plunged the industry into the prevailing bear market. Initially, the TerraUSD stablecoin enjoys a constant value with $1. It manifested as a mix of algorithms and trader incentives involving a sister token, Luna. However, its crash led to the demise of its algorithm stablecoin UST. Consequently, investors lost over $40 billion UST. Without any doubt, this development heightened the call for full regulation of stablecoins by authorities across the globe.

Ongoing investigations into the crash of Terra across the globe

A few weeks after, investigators across the globe started to probe the circumstances that led to the collapse of Terra. Currently, South Korea is one those countries that have shown commitment to probing the saga. Last July, its investigators stormed the apartment of Daniel Shin, one of the Terra co-founders. Worthy of note that the prosecutors arrested Shin and declared Kwon wanted.

According to the South Korean authorities, Shin connived with Kwon to acquire illicit profit of US$104 million with LUNA project. He reportedly siphoned this gain prior to the official issuance of the token. Further, Shin was accused of compromising the personal information of customers of his company, identified as Chai Corporation. According to findings, he reportedly used their personal information to promote Terra’s cryptocurrencies. Occasioned by this revelation, about $104 million in assets, belonging to Shin became frozen.

Beyond South Korea, the United State is also investigating the collapse of the project. Just recently, the US regulator initiated a class-action suit against the founders of the project. According to the filing, both Kwon and Shin leveraged on the project to swindle investors of their assets. SEC said it uncovered how about 10,000 Bitcoin was withdrawn from Terra and Luna foundation. The agency said Kwon laundered over $100 million worth of Bitcoin since the collapse of Terra. Also, its investigation reportedly revealed that the co-founder exchanged the asset into fiat.

Meanwhile, Kwon still insisted that he knows nothing about the collapse of the Terra project. He denied that the project was fraudulent. According to him, he also lost all his net worth to the crash, just like other investors.

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Dare Ibitoye
Dare Ibitoye
Over the years, Dare has been a committed reporter in the field of cryptocurrencies. He is also interested in researching about the innovative projects within the blockchain space. During his spare time, Dare loves to listen to music and read about technological trends in the contemporary world

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