According to reports, the US Justice Department is investigating the collapse of TerraClassicU.S. (USTC) stablecoin, which caused $40 billion in damage to the Terra ecosystem in May last year.

According to the Wall Street Journal on March 13, two major organizations of the Justice Department, the Federal Government Bureau of investigation (FBI) and the Office of the United States Attorney's Company for the South District of New York City, have interrogated former Terraform lab staff in recent weeks.

According to industry insiders, the industry involved in the investigation is similar to the lawsuit mentioned by the Securities and Exchange Commission against Terraform Labs and founder du Quan on Feb. 16.

Investigators understand that the topics discussed include the relationship between the company's South Korean payment system Chai and the Terra blockchain technology operated by iFLYTEK Technology.

In its filing, the SEC accused the prime minister of defrauding investors into thinking that Chai transactions should be processed on the Terra blockchain.

In the lawsuit, SEC also accused the right to defraud investors on the risk of algorithmically stable currencies, which are pegged to the US dollar at 1:1.

It is not clear at this stage what actual charges might be mentioned by the judiciary. The investigation does not necessarily mean that charges will be made explicitly.

Since his collapse, he has reportedly gone to Malaysia, the United Arab Emirates and now Portugal, where he is now said to be, according to South Korean officials. The two South Korean governments were recently sent to Portugal to explore the prime minister's rights, but their search failed.

However, Prime Minister Kwon claimed that although South Korean prosecutors signed his arrest warrant on September 9, he was not "at large." 14 and Interpol, an international law enforcement agency, submitted a red notice on September 9. twenty-six。

Mr. Kwon told blog Laura Shin in October that he had not seen Han's arrest warrant and continued to deny allegations of fraud on social platforms.

In addition, it is understood that New York City investigators are investigating a series of dating group surveys conducted by former members of Jump Trading, Jane Street and Alameda Research, Bloomberg News reported on March 13. Alameda declared bankruptcy last November, along with FTX.

It is reported that the investigation is investigating TerraU.S. Smooth new projects are not related to sales market control strategies.

Cointelegraph contacted Terraform Labs but received no immediate response.