Singapore police have launched an investigation into Do Kwon and Terraform Labs

On March 6, according to Bloomberg News, the Singapore police have launched an investigation into Do Kwon and Terraform Labs. Terraform Labs did not immediately respond to requests for comment.

Interpretation of this information:

The Singaporean police are investigating Do Kwon and Terraform Labs, according to a report by Bloomberg News on March 6th. Terraform Labs, the blockchain developer that recently launched the Mirror Protocol and Anchor Protocol, has yet to speak out about the investigation.

The reasons behind the investigation are still unclear, but some analysts speculate it could relate to Terraform Labs’ ongoing expansion plans into Southeast Asia, particularly integrating into Singapore’s vibrant technology corridor. Others suggest that it might be related to potential fraud or governance issues. At this point, the police have not disclosed what specific aspect or activity has triggered the investigation.

Terraform Labs’ Mirror Protocol, launched in December 2020, is a synthetic asset protocol built on the Terra blockchain, aiming to enable users to trade in a wide range of real-world assets like commodities, equities, and cryptocurrencies. The protocol has gained popularity due to its limited slippage and low transaction fees. It is said to be a democratizing force in the financial industry, enabling people of all backgrounds to access markets traditionally only available to institutional investors.

The Anchor Protocol, launched in February 2021, is also a new product from Terraform Labs. It is a decentralized platform that offers stablecoin deposits with interest rates around 20%, which are much higher than most traditional bank deposits. Anchor Protocol is the first DeFi-based savings account that provides a yield higher than inflation, allowing users to earn a profitable return on their savings.

At the same time, Terraform Labs is actively expanding its presence globally, and Singapore, as a crypto-friendly and forward-thinking city-state, is seen as an ideal location for Terraform Labs to expand its reach. Earlier this year, Terraform Labs announced a collaboration with the Singaporean government to explore blockchain technology applications for e-commerce.

The investigation by Singaporean authorities into Terraform Labs and its founder, Do Kwon, comes at an uncertain time for the cryptocurrency industry. Regulatory scrutiny and changing attitudes towards digital assets have led to increased scrutiny and speculation about the future of the industry. And as the world recovers from the COVID-19 pandemic, the need for secure, decentralized financial systems has never been more critical.