JAKARTA - Cases of alleged fraud and money laundering through crypto assets continue to be in the spotlight in the world. Recently, the US Securities and Exchange Commission (SEC) filed a lawsuit against Terraform Labs and its CEO, Do Kwon, on charges of fraud and "billion-dollar crypto asset fraud".
As a result, DOJ and the FBI are reportedly investigating Terraform Labs. Alexander Osipovich from the Wall Street Journal reported that several sources revealed that the FBI and the DOJ Southern District of New York had examined former Terraform Labs team members.
DOJ and FBI investigations are allegedly in line with SEC allegations and examining the relationship between Terraform Labs (TFL) and South Korean payment company Chai.
Daniel Shin, co-founder of TFL, is also Chai's creator. Several social media reports show that Terraform Labs and Chai have unusual relationships. This is suspected to be the basis for allegations that Chai helped Terra launder money. In mid-November 2022, South Korean authorities are also investigating Chai and Daniel Shin.
To date, both DOJ and Terraform Labs have declined to comment on this case. It is not known exactly what is the basis for the DOJ investigation, but some sources have stated that the issue is similar to the SEC's allegations.
On the other hand, lawyers Do Kwon and Terraform Labs are trying to drop the SEC's lawsuit. Kwon himself strongly denied that he had committed fraud. Currently, Kwon is not active on social media since February 1, 2023.
This case affects the value of the Terra USD (UST) crypto asset previously known as the Terra stablecoin. Currently, USTC is trading for $ 0.023 per unit. Meanwhile, Terra's native crypto asset, LUNA, now known as Luna Classic (LUNC), is trading for $ 0.00,13233 per coin on Tuesday.
LUNA's latest version, LUNA 2.0, is currently trading at a price of 1.42 US dollars (IDR 21 thousand) per unit. However, the whereabouts of TFL CEO, Do Kwon, are unknown. Prosecutors in South Korea suspect that Kwon may be in Dubai or even Serbia.
This case shows the importance of monitoring crypto assets and companies operating in them. Despite the potential profits offered by crypto assets, the security risks must also be taken seriously. In this case, the role of supervisory and regulatory agencies such as the SEC is very important to prevent similar cases from happening in the future.
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