Police report made against Terraform Labs here; police not investigating

A police report was lodged by a "concerned citizen" against Singapore-registered firm Terraform Labs and its South Korean co-founder Kwon Do-hyeong last week.

The complainant claimed to know of more than 1,000 Singaporeans who have invested in UST and Luna, and that the police report was to "seek justice for all those who have lost money".

The report, which has been circulating online, also contained the address of Terraform Labs.

Police confirmed the report had been made, but did not confirm that they are investigating.

The Straits Times understands that the police are not investigating.

Last week, the price of both TerraUSD - better known as UST - and its affiliated cryptocurrency Luna collapsed, following a wave of selling pressure. UST is a stablecoin that was pegged to the United States dollar using an algorithm.

The Terra blockchain was halted and restored twice, and both Luna and UST were delisted from exchanges, including Binance.

Terraform Labs was co-founded in 2018 by Mr Kwon, better known as Do Kwon, and American citizen Daniel Hyunsung Shin, who is the driving force behind the Terra blockchain. An Accounting and Corporate Regulatory Authority record showed the firm had a paid-up capital of $12.

In the wake of last week's chaos, Mr Kwon was apparently trying to promote a plan to revive the Terra ecosystem.

His wife has reportedly sought emergency protection after an unidentified man "trespassed" into their apartment building in South Korea, Seoul police told digital media platform Forkast.

Crypto exchange Coinhako told users yesterday that trading in Luna and UST would cease at 11.59pm that day, and that they could withdraw their UST and Luna holdings if they wanted.

If they do not, Coinhako will convert the remaining Luna and UST balances into Singapore dollars at the prevailing rate, and credit them to users' Coinhako SGD wallet.

Crypto investor Ng Yu Jie, 27, said: "The current value of Luna is zero. I get nothing, even if I convert or withdraw the coins."

He added that he does not think Mr Kwon would be able to revive the Terra network as "people would have lost trust in Terra".