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

(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.

Spokespeople for Terraform Labs and the U.S. Attorney’s office for the Southern District of New York did not immediately respond to Reuters’ requests for 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.