While regulators worldwide continue to probe against those responsible for the TerraUSD stablecoin crash, the wounds are still fresh in the community. According to a WSJ report, now the U.S. Justice Department is looking into the TerraUSD crash, which may end up with Do Kwon, the founder of TerraUSD, coming under criminal charges.
Federal Bureau of Investigation (FBI) and the Southern District of New York (SDNY) allegedly interrogated former employees of Kwon’s company, Terraform Labs, etc. Singapore authorities also launched an investigation against Terraform Labs Pte last week.
The U.S. authorities also attempted to speak with other individuals regarding the Terra collapse.
Just last month, SEC sued Terraform Labs & Do Kwon for scamming crypto investors. SEC alleged that Terra committed fraud by repeating false and misleading statements to build trust before causing devastating losses for investors.
A few days later, Jump Crypto was accused of profiting $1.28B from collapsed Terra. The SEC claims that in exchange for market making, Jump Crypto was able to purchase LUNA for 40 cents on occasion when the cryptocurrency was trading for $90.
Terra crash caused a chain of collapses in the crypto industry, which is yet to recover from its effect. In the end, even FTX, who acted as a savior at that time, fell off, ultimately causing more distress to the already struggling community.
