Mar 14, 2023
Justice Department Investigating $40B Terra Ecosystem Collapse
The US Justice Department is reportedly investigating the collapse of the TerraClassicUSD (USTC) stablecoin, which caused a $40 billion loss in the Terra ecosystem last May. The Federal Bureau of Investigation and the U.S. Attorney’s Office for the Southern District of New York have been interrogating former staff members at Terraform Labs in recent weeks, according to a Wall Street Journal report.
The inquiry is similar to a lawsuit filed against Terraform Labs and its founder Do Kwon by the U.S. Securities Exchange Commission on Feb. 16. Investigators have asked questions about the relationship between Chai, a South Korean-based payment platform, and the Terra blockchain on which USTC operated. The SEC alleged in its filing that Kwon misled investors into believing that Chai transactions were processed on the Terra blockchain.
The SEC also accused Kwon of deceiving investors about the risks of the algorithmic-based stablecoin, which is designed to be pegged 1:1 to the U.S. dollar. It is uncertain what charges the Justice Department is potentially pursuing. The investigation does not necessarily mean that charges will be filed.
Since the collapse, Kwon has reportedly left South Korea for Singapore, Dubai, and now Serbia, where he is believed to be, according to South Korean officials. Two South Korean authorities were recently sent to Serbia to find Kwon but were unsuccessful in their search attempts. Kwon has denied fraud allegations on social media and claims he is not “on the run”.
New York prosecutors are also investigating a series of chat-group investigations from former members at Jump Trading, Jane Street and Alameda Research, as reported by Bloomberg. Alameda filed for bankruptcy alongside FTX in November. The investigation is reportedly looking into whether market manipulation tactics were involved in the TerraUSD stablecoin project.
The collapse of the USTC stablecoin has far-reaching consequences for the web3 space. This is especially true for NFTs, which have become increasingly popular in recent months. The ability to sell NFTs on the blockchain has opened up many new opportunities for crypto-based businesses, but it has also created a need for NFT marketing and promotion.
Twitter NFT marketing is one of the most effective ways to reach potential buyers, as it allows businesses to target a specific audience and promote their NFTs on a platform with a large user base. However, many businesses lack the resources and expertise to effectively market their NFTs on Twitter, which is why many are turning to NFT marketing agencies to help them promote their NFTs.
Web3 agencies are also helping businesses to sell their NFTs, as they have the resources and experience to get the most out of the web3 space. They can provide businesses with the tools and strategies they need to maximize their NFT sales and ensure that their NFTs reach the right audience.
The US Justice Department’s investigation into the collapse of the USTC stablecoin may have far-reaching implications for the web3 space, and it is important for businesses to be aware of the potential risks associated with selling NFTs. However, with the right strategies and the help of a web3 agency, businesses can still succeed in the NFT space.Disclaimer: All investment or financial opinions expressed by MoonLanding Media are not recommendations and are intended for entertainment purposes only. Do your own research prior to making any kind of investment. This article has been generated based on trending topics, has not been fact checked and may contain incorrect information. Please verify all information before relying on it.