US SEC Gains Access to Do Kwon’s Singaporean Records (Report)

Terraform Labs co-founder has reportedly lost his bid against the US Securities and Exchange Commission (SEC). The latter is now allowed to search for records from the Monetary Authority of Singapore (MAS) that could yield more details on how the 31-year-old developer ran the Luna Foundation Guard and whether he had a hand in last year’s LUNA/UST collapse.

Numerous agencies, observers, and prosecutors have alleged that Kwon is the main culprit in the multi-billion dollar incident. He remains in detention in Montenegro after he was arrested by local authorities in March.

The SEC strikes again

According to a recent Bloomberg coverageU.S. District Judge Jed Rakoff denied Kwon’s request to block the SEC from examining his data stored in MAS.

The agency supposedly has records indicating how it created the Luna Foundation Guard (the non-profit organization behind the collapsing Terra ecosystem) and raised funds to keep the value of the algorithmic stablecoin — UST — at $1.

The asset lost its currency peg in May 2022 and fell well below its target price. Since the original token was closely related, users began minting more LUNA to stabilize the fallout. This created an infinite balancing loop, which eventually ended with the prices of both tokens going to zero.

The crash took its toll, and some began to search for the reasons behind it. The US Securities and Exchange Commission was among the agencies that claimed Do Kwon and Terraform Labs were responsible. He. She foot complaint in February, alleging they orchestrated a crypto scam that resulted in billions of dollars in losses for investors.

Could Kun spend his life in prison?

The former crypto mogul was reluctant to cooperate with regulators at the time of the incident and fled his home country. Multiple sources behold His hiding destinations for the past several months included Dubai, Seychelles, Russia, Mauritius and Serbia.

Kwon, who had an Interpol red notice, was last Arrested in Podgorica (the capital of Montenegro) last month after allegedly trying to flee to another country, carrying a fake Costa Rican passport.

He is likely to be held in the Balkan country for as long as 30 days before being extradited to the US or South Korea. If found guilty in the US, he could face more than 100 years in prison, while the maximum sentence in his home country would be “only” 40 years.