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Justice Department Investigates TerraUSD Following SEC Probe

Following a prove from the SEC, the US Department of Justice has launched its own investigation into Do Kwon and Terraform Labs

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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.


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