{"id":75501,"date":"2023-03-14T10:49:06","date_gmt":"2023-03-14T08:49:06","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=75501"},"modified":"2025-09-10T12:00:22","modified_gmt":"2025-09-10T09:00:22","slug":"us-doj-opens-probe-into-terrausd-collapse","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/us-doj-opens-probe-into-terrausd-collapse\/","title":{"rendered":"US DOJ opens probe into TerraUSD collapse"},"content":{"rendered":"<p>The FBI and authorities in the Southern District of New York questioned former members of the Terraform Labs (TFL) team as part of a U.S. Department of Justice investigation into the collapse of the TerraUSD stablecoin. <a href=\"https:\/\/www.wsj.com\/articles\/justice-department-probes-collapse-of-do-kwons-terrausd-stablecoin-10bd5ffb?mod=Searchresults_pos1&#038;page=1\">The Wall Street Journal<\/a> reports, citing sources.<\/p>\n<p>According to them, the DOJ&#8217;s investigation covers the same areas as the <span data-descr=\"US Securities and Exchange Commission\" class=\"old_tooltip\">SEC<\/span> civil action filed against the company and its leadership in February.<\/p>\n<p>In particular, investigators are examining the link between the South Korean payments company Chai and the TFL blockchain. The SEC alleges that TFL CEO Do Kwon misled the public about processing the Chai transaction through their network, even though the service used a &#8220;more traditional technology&#8221;.<\/p>\n<p>U.S. prosecutors are also examining communications between trading firms, including Jump Trading Group, Alameda Research and Jane Street Group, about a TerraUSD bailout, Bloomberg News reports.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">SCOOP: Jane Street, Jump and Alameda are facing scrutiny by US prosecutors for their Telegram group chats about a Terra bailout last May. <\/p>\n<p>W\/<a href=\"https:\/\/twitter.com\/avabmorrison?ref_src=twsrc%5Etfw\">@avabmorrison<\/a> <a href=\"https:\/\/twitter.com\/allyversprille?ref_src=twsrc%5Etfw\">@allyversprille<\/a> <a href=\"https:\/\/twitter.com\/ElleBeyoud?ref_src=twsrc%5Etfw\">@ElleBeyoud<\/a> <a href=\"https:\/\/t.co\/MKZ5tjOXm8\">pic.twitter.com\/MKZ5tjOXm8<\/a><\/p>\n<p>\u2014 Yueqi Yang (@Yueqi_Yang) <a href=\"https:\/\/twitter.com\/Yueqi_Yang\/status\/1635399195573252097?ref_src=twsrc%5Etfw\">March 13, 2023<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>To date the <span data-descr=\"US Securities and Exchange Commission\" class=\"old_tooltip\">SEC<\/span> civil charges against TFL and Do Kwon for orchestrating multi-billion-dollar securities fraud. If brought by the U.S. Department of Justice, they would be criminal charges and could carry prison time.<\/p>\n<p>Earlier in March, the Singapore Police also opened investigations into the company.<\/p>\n<p>In December 2022, media reports citing the Korean prosecutors said that Kwon <a href=\"https:\/\/u1f987.com\/en\/news\/media-reports-terraform-labs-founder-do-kwon-is-in-hiding-in-serbia\">is hiding in Serbia<\/a>. Later, representatives from the DOJ and the regulator clarified that these claims were not false.<\/p>\n<p>The head of TFL himself said that <a href=\"https:\/\/u1f987.com\/en\/news\/do-kwon-denies-reports-that-he-is-on-the-run\">is not on the run<\/a> and is cooperating with law enforcement. In September Bloomberg <a href=\"https:\/\/u1f987.com\/en\/news\/media-interpol-issues-red-notice-for-do-kwon\">reported<\/a> that Interpol issued a red notice for his arrest. <\/p>\n","protected":false},"excerpt":{"rendered":"<p>The FBI questioned former Terraform Labs team members as part of a U.S. Department of Justice investigation into the collapse of the TerraUSD stablecoin.<\/p>\n","protected":false},"author":1,"featured_media":75502,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1323,852,26],"class_list":["post-75501","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-investigations","tag-terra","tag-usa"],"aioseo_notices":[],"amp_enabled":true,"views":"30","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/75501","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=75501"}],"version-history":[{"count":1,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/75501\/revisions"}],"predecessor-version":[{"id":75503,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/75501\/revisions\/75503"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/75502"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=75501"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=75501"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=75501"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}