Justice Department Probes Terra's Do Kwon Over Failed Stablecoin: Report
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The US Justice Department is probing Terraform Labs and its founder Do Kwon over last year's collapse of the TerraUSD algorithmic stablecoin, The Wall Street Journal has learned, citing people with the knowledge of the matter.

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The report says the Federal Bureau of Investigation and the Southern District of New York have already interrogated ex-employees of Terraform Labs in recent weeks. The regulators reportedly asked about the relationship between Chai, a South Korean payment app, and the Terraform blockchain. Both agencies are aimed at the same questions raised in the US Securities and Exchange Commission (SEC) lawsuit.

Singapore Police Probes Do Kwon Over Terraform Labs

In February 2023, the SEC filed a civil fraud lawsuit against Do Kwon, saying he orchestrated a "multi-billion dollar crypto asset securities fraud" involving an algorithmic stablecoin and other crypto asset securities. The watchdog also alleges that Terraform and Kwon offered and sold investors other means to invest in their crypto empire, including the crypto asset security tokens.

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