The Federal Bureau of Investigation (FBI) and the Southern District of New York (SDNY) have already interrogated former Terraform Labs employees who dealt with the USTC stablecoin. Investigators talked about the relationship between the South Korean payment platform Chai and the Terra blockchain, which ran USTC.
The US Securities and Exchange Commission (SEC) insists Luna/Terra founder Do Kwon misled investors into believing that Chai transactions were processed on the Terra blockchain.
Neither Terraform Labs nor representatives of the US Attorney’s Office commented on the information about the searches to the media.
In February, the SEC sued Terraform Labs and Do Kwon for “managing a multi-billion dollar fraud.” The SEC statement highlighted that Terraform Labs was offering and selling “an interconnected set of digital securities in illegal transactions.” The regulator notes that the collapse of the UST algorithmic stablecoin resulted in the creation of the Terra Classic (LUNC) token.
The whereabouts of the founder of the company, Do Kwon, is currently unknown. Presumably he may be in Serbia.
Do Kwon still denies being responsible for the collapse of the Terra ecosystem. According to him, one of the catalysts for the fall of the ecosystem was the liquidity crisis of the FTX and Genesis sites.
Source: Bits
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