The FBI and New York authorities have reportedly launched their own investigation into events and those involved in the collapse of the TerraUSD stablecoin.
which contributed to a $40 billion wipe out in the Terra ecosystem last May.
Two agencies within the department — the Federal Bureau of Investigation and Southern District of New York have interrogated former staff at Terraform Labs in recent weeks,lawsuit filed against Terraform Labs and its founder Do KwonAmong topics that investigators have asked about was the relationship between Chai, a South Korean-based payment platform and the Terra blockchain on which USTC operated.
The SEC alleged in its filing alleged that Kwon misled investors into believing that Chai transactions were processed on the Terra blockchain.The SEC in its lawsuit also accused Kwon of misleading investors about the risks of the algorithmic-based stablecoin, which is designed to be pegged 1:1 to the U.S. dollar.
It is unclear what specific charges the Justice Department is potentially pursuing. The investigation does not necessarily mean that charges will be filed.
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