{"id":18706,"date":"2023-03-14T14:05:42","date_gmt":"2023-03-14T14:05:42","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/doj-and-fbi-investigating-terraform-labs-in-connection-to-algorithmic-stablecoin-collapse-bitcoin-news\/"},"modified":"2023-03-14T14:05:42","modified_gmt":"2023-03-14T14:05:42","slug":"doj-and-fbi-investigating-terraform-labs-in-connection-to-algorithmic-stablecoin-collapse-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/doj-and-fbi-investigating-terraform-labs-in-connection-to-algorithmic-stablecoin-collapse-bitcoin-news\/","title":{"rendered":"DOJ and FBI Investigating Terraform Labs in Connection to Algorithmic Stablecoin Collapse \u2013 Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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The Department of Justice (DOJ) and the Federal Bureau of Investigation (FBI) are reportedly investigating the collapse of the algorithmic stablecoin terra usd (UST) and the firm Terraform Labs. Unnamed sources say that former staff members from Terraform Labs, the company behind the Terra blockchain project, have been questioned by U.S. law enforcement.<\/strong><\/p>\n

Unusual Relationship: Report Claims Terraform Labs and South Korean Payment Firm Chai Under U.S. Investigation<\/h2>\n

After the U.S. Securities and Exchange Commission (SEC) filed a lawsuit<\/a> against Terraform Labs and its CEO, Do Kwon, accusing them of fraud and orchestrating \u201ca multibillion-dollar crypto-asset securities fraud,\u201d the DOJ and FBI are allegedly investigating Terraform Labs. The Wall Street Journal\u2019s Alexander Osipovich reports<\/a> that people familiar with the matter have detailed that the FBI and the Southern District of New York DOJ have been questioning former members of the Terraform Labs team.<\/p>\n

According to sources, the DOJ\u2019s probe is not much different from the SEC\u2019s allegations, and investigators are also looking into the relationship between Terraform Labs (TFL) and the South Korean payment firm Chai. The co-founder of TFL, Daniel Shin, created the payment firm Chai, and it has been alleged that the company helped Terra launder funds. Several<\/a> social media reports<\/a> have shown that Terraform Labs and Chai had an unusual relationship. In mid-November 2022, it was reported<\/a> that South Korean investigators were probing Chai and Daniel Shin.<\/p>\n

Osipovich noted that the WSJ contacted the SDNY DOJ and Terraform Labs, but both declined to comment. The report also noted that it \u201ccouldn\u2019t be learned what specific charges\u201d the DOJ may be pursuing, and the case could be dropped. Do Kwon\u2019s lawyer and the attorney for TFL are attempting to get the SEC lawsuit dismissed, and Kwon vehemently denies committing fraud. Kwon has not been active on social media since February 1, 2023.<\/p>\n

Currently, the once-stablecoin Terra USD (UST), now referred to as USTC, is trading for $0.023 per unit. Terra\u2019s former native asset, LUNA, now referred to as Luna Classic (LUNC), is priced at $0.00013233 per coin on Tuesday. Furthermore, the second iteration of Terra\u2019s native crypto asset, LUNA 2.0, is exchanging hands today for $1.42 per unit. TFL CEO Do Kwon was living in Singapore, but his whereabouts are currently unknown. Prosecutors from South Korea think that Kwon may be in Dubai and possibly even Serbia.<\/p>\n

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\nTags in this story
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Alexander Osipovich<\/a>, Algorithmic stablecoin<\/a>, Blockchain<\/a>, CHAI<\/a>, Charges<\/a>, co-founder<\/a>, Cryptocurrency<\/a>, Daniel Shin<\/a>, dismissal<\/a>, DOJ<\/a>, Dubai<\/a>, FBI<\/a>, Fraud<\/a>, Investigation<\/a>, investigators<\/a>, lawyer<\/a>, LUNA<\/a>, Luna 2.0<\/a>, Money Laundering<\/a>, multibillion-dollar<\/a>, probe<\/a>, relationship<\/a>, SDNY<\/a>, SEC<\/a>, securities fraud<\/a>, Serbia<\/a>, Social Media<\/a>, South Korea<\/a>, south korean<\/a>, Terra USD<\/a>, terraform labs<\/a>, TFL CEO<\/a>, unusual<\/a>, UST<\/a>, Wall Street Journal<\/a><\/div>\n<\/div>\n

What do you think the outcome of the DOJ and FBI investigation into Terraform Labs will be? Share your thoughts in the comments section below.<\/strong><\/em><\/p>\n

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\nJamie Redman <\/h6>\n

\nJamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

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