The United States government’s Department of Justice (DOJ) and Federal Bureau of Investigation (FBI) are looking into what could have caused the failure of Terra usd (UST), which is a type of cryptocurrency. People have said that the former employees of Terraform Labs, the organisation that runs the Terra blockchain project, have been questioned by American law enforcement.
SEC Accuses Terraform Labs of Fraud
The U.S. Securities and Exchange Commission (SEC) just formally accused the company Terraform Labs and its CEO, Do Kwon, of having committed fraud in connection to crypto-assets worth billions of dollars. This means that they are suspected of breaking the law. In response, it is said that government organizations like the Federal Bureau of Investigation (FBI) and the Department of Justice (DOJ) have been questioning former employees who used to work for Terraform Labs.
The Department of Justice (DOJ) and the Securities and Exchange Commission (SEC) are investigating Terraform Labs (TFL), a company led by Daniel Shin, for potentially laundering money. Reports seem to show that Chai, another payment firm co-founded by Daniel Shin, is helping Terraform Labs with money laundering. In November 2022, South Korean investigators started to look into both companies in order to figure out what was going on.
Mr. Osipovich revealed that the Wall Street Journal tried to contact both Terraform Labs and the Department of Justice in New York City, but neither wanted to say anything. We also don’t know what kind of charges (if any) the DOJ might be looking into or if it may decide to drop this case. Mr. Kwon’s lawyer and TFL’s attorney are trying to make the SEC lawsuit go away, and Mr. Kwon strongly denies doing something illegal. Lastly, Mr. Kwon has not been active on social media since February 1st, 2023.
Right now, one UST coin is worth $0.023, while it’s old LUNA coin is trading for $0.00013233 each. The new version of LUNA called Luna 2.0 is being sold for $1.42 each coin. Do Kwon, the CEO of TFL, used to live in Singapore but no one knows his exact location now – prosecutors from South Korea believe he might be in either Dubai or Serbia.
Have you heard about the investigation into Terraform Labs? People want to know what’s going to happen. If you have any ideas, let us know in the comments section!