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U.S. Justice Department probes collapse of TerraUSD stablecoin – WSJ

FILE PHOTO: Smartphone with Terra logo is placed on displayed U.S. dollars in this illustration taken May 11, 2022. Illustration taken May 11, 2022. REUTERS/Dado Ruvic/Illustration

(Reuters) -The U.S. Justice Department is investigating last year’s collapse of the TerraUSD stablecoin, the Wall Street Journal reported on Monday, citing people familiar with the matter.

The Federal Bureau of Investigation and the Southern District of New York (SDNY) have questioned former team members of the company behind the stablecoin, the report said.

Terraform Labs did not immediately respond to a Reuters request for comment. A spokesperson for the U.S. Attorney’s office for the SDNY declined to comment.

Last month, the U.S. Securities and Exchange Commission charged Terraform founder Do Kwon with defrauding investors in what the regulator deemed a multibillion-dollar scheme.


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