US Justice Department is reportedly investigating TerraUSD (UST) collapse

ambcrypto.com:

The United States Justice Department is reportedly investigating the collapse of the once-leading algo-stablecoin – TerraUSD (UST). According to a report by Wall Street Journal, the Federal Bureau of Investigation (FBI) and the Southern District of New York (SDNY) have started to probe UST’s collapse.

The report states that both authorities have interrogated former employees of Terraform Labs – the company behind the algo-stablecoin. Additionally, the agencies are working on interviewing more individuals connected to the case, the report said. This investigation could possibly open a criminal case against Do Kwon – the founder of Terraform Labs.

Notably, the developments come nearly a month after the US Securities and Exchanges Commission (SEC) filed a lawsuit against Do Kwon and Terraform Labs. The charges alleged that Kwon and his firm had committed securities fraud and engaged in a scheme to defraud investors. The lawsuit claimed that the stablecoin – UST and LUNA were securities. The Justice Department’s investigation is on the same lines as that of the SEC, however, the charges that would be registered against Kwon and the firm are still unclear.

Read Terra Luna Classic [LUNC] Price Prediction 2023-24

Moreover, the FBI and SDNY are reportedly probing matters related to Chai payments, according to WSJ. Terraform Labs had falsely claimed that ‘Chai’ – a South Korean mobile payment application used Terraform’s blockchain to process commercial payments, as per the SEC charges. In addition, the firm allegedly replicated the transactions to make it look like the blockchain was used for payments.

Subsequently, US prosecutors are investigating the conversations of Jump Trading – a proprietary trading firm, Jane Street Group – a