The collapse of Do Kwon's stablecoin, TerraUSD, is the
subject of an investigation by the American Department of Justice. According to
a Wall Street Journal story, the Federal Bureau of Investigation and the
Southern District of New York have started investigating former employees of Do
Kwon's cryptocurrency company, Terraform Laboratories.
If the DOJ discovers any indictable information from the
latest investigation, ex-Terra Labs CEO Kwon, who is on the run, might face
additional charges from American regulators. Some of Kwon's Terraform Labs team
members have already been questioned by the FBI and SDNY, and more will be in
the coming weeks.
The stablecoin UST from Terraform Labs unpegged in May,
having an impact on investors and cryptocurrency companies. Around $40 billion
was lost as a result of the Terra collapse, wiping off users' current earnings