Justice Department Investigates TerraUSD Following SEC Probe
The US Department of Justice is looking into the collapse of Do Kwon's TerraUSD stablecoin.
Both the FBI and the Southern District of New York – part of the Justice Department – have questioned former Terraform Labs staff too.
The probe follows echoes the SEC's charge against Terraform Labs and Do Kwon in February.
Read more: SEC Finally Charges Do Kwon, Terraform Labs With Fraud
SEC investigators are looking into the relationship between the Terra blockchain and South Korean based payment platform Chai. It is alleged that Do Kwon misled investors into believing Chai transactions were processed on Terra's blockchain, instead of the traditional technology it was actually using.
A lawyer for Do Kwon and Terraform said in court that they are seeking to dismiss the lawsuit from the SEC.
Specifics of the Justice Department's investigation is unclear but prosecutors could drop the case without filing charges.
Singapore investigation
Just last week, the Singapore Police Force (SPF) began an investigation into Terraform Labs and Do Kwon, who is no longer in the country.
Read more: Singapore Police Finally Probe Terra Luna Founder Do Kwon
In a statement, the SPF said, “Investigations have commenced in relation to Terraform Labs” with "ongoing" inquiries, adding that Do Kwon is not currently in Singapore. He had previously been operating from the city-state.
Do Kwon's location has been unclear since September last year after South Korea issued an arrest warrant for him following the crash of LUNA, the native token of the Terra ecosystem.
Even Interpol Issued a Red Notice calling for law enforcement around the world to locate and arrest the crypto outlaw.
Last month, a South Korean delegation went to Serbia to search for Do Kwon.
Read more: Do Kwon Hunted By South Korea Officials in Serbia
Korea Criminal Justice Policy Institute researcher Seung Jae-Hyeon explained that Serbia and South Korea have never signed an extradition treaty, making for the perfect hiding place for the Korean fugitive.
Do Kwon has remained silent on social media, with his last tweet dated 1 February 2023.
The world of Web3 can be quite a whirlwind. Whether it’s crypto news in Singapore, Southeast Asia or even across the globe, we understand how busy the industry is keeping you, so we kindly send out three newsletters each week: BlockBeat for a wrap-up of the week’s digital assets news; Blockhead Brief for weekend happenings as well as what to look forward to in the week ahead; and Business Bulletin for macroeconomic updates and industry developments. To avoid FOMO and access member-only features, click here to subscribe.