U.S Justice Department Investigates TerraUSD Stablecoin Collapse

• The US Justice Department is investigating last year’s collapse of TerraClassicUSD (USTD) stablecoin.
• The investigation raises the possibility of filing U.S. criminal charges against the South Korean crypto entrepreneur Do Kwon and Terraform Labs.
• The FBI and New York officials have already interrogated the former Terraform Labs team members.

The United States Justice Department is investigating last year’s collapse of the TerraClassicUSD (USTD) stablecoin, which contributed to the sweep away of $40 billion in the Terra ecosystem. The investigation has also raised the chances of filing criminal charges against Do Kwon, the South Korean crypto entrepreneur and stablecoin creator, and his company, Terraform Labs.

According to The Wall Street Journal report, the Federal Bureau of Investigation (FBI) and the U.S.  Attorney’s Office for the Southern District of New York has already interrogated the former team members of Terraform Labs.

Moreover, in Manhattan federal court, the Securities and Exchange Commission (SEC)  filed a criminal lawsuit against Kwon and Terraform Labs last month. Kwon and Terraform Labs were indicted by the lawsuit on deceiving the…

The post U.S Justice Department Investigates TerraUSD Stablecoin Collapse appeared first on Coin Edition.