Terraform Labs, the Singapore-registered company behind the Terra protocol, today Singapore is home to hundreds of Singapore based Crypto companies. and has offices to rent co-working spaces around the world Like many Web 3 startups, there are no official headquarters.
The company’s sole asset is the Luna Foundation Guard, registered in Singapore and overseen by Do Kwon who regulates the wallet to support peg USTs during times of extreme volatility. which nowadays most of these wallets are empty byonly left $69 million in AVAX tokens
Singapore regulators are aware of the trend of crypto companies using Singapore to operate overseas without significant ties to the country of origin. Parliament has passed a bill that includes provisions requiring locally registered Crypto companies to do business abroad. permission required This is mainly due to the main reason for anti-money laundering.
And given the impact this has on Terraform Labs now, should there be legal action against the company behind this protocol by token holders? Or what types of assets can be seized? So how does the Singapore government have power over Do Kwon and co-founder Daniel Shin? in which the company filed with local authorities Both gave their address in Singapore. But it is unclear whether they live there full time, as Kwon also has a residence in South Korea.
Terraform Labs and Do Kwon previously sued the US Securities and Exchange Commission (SEC), alleging that American regulators It has no power over Kwon, a South Korean living in Singapore. and they have no ties to the US. So how can they be targeted by regulators? They argued on this point. But they may forget that they are in control of Singapore’s justice system. And while this country has a good security framework compared to the US.
and if the Singapore government It felt that the country’s reputation was in jeopardy due to a foreign listed company with little ties to it. and causing tens of billions of dollars in damage This could be followed by a process or measure to close all doors for Singapore-based crypto companies. but doing business abroad
And if so, will Terraform and Kwon continue to claim that Singapore is “powerless”?
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