The Terra (UST) case rocked the cryptocurrency world last year, and led to a chain reaction whose effects are still being felt today. And it would not be over, since the Federal Bureau of Investigation (FBI) of the United States would have begun to take an interest in the case. What could this mean for Do Kwon?
The FBI is investigating the Terra case.
According to a source interviewed by the Wall Street Journal, the United States Department of Justice began to turn its attention to the Terra case, ten months after the catastrophic collapse of the UST and its entire ecosystem. The FBI in particular reportedly interviewed former Terraform Labs employees. Federal Court for the Southern District of New York, which routinely handles financial crimes cases, is also reportedly participating in the investigation.
Among the lines of inquiry, the FBI is particularly focused on Chai, a South Korean payment app partner of Terra. Terra Labs is accused of claiming to process Chai transactions on its native blockchain, when in fact they were processed through more conventional means. The U.S. Securities and Exchange Commission (SEC) is also currently investigating the matter: it sued Do Kwon a month ago.
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Do Kwon targeted by numerous investigations
For his part, the CEO of Terraform Labs Do Kwon is on the run, and is hiding in Serbia according to the South Korean authorities. However, this did not prevent him from prancing on Twitter until last December, nor from appearing in live journalists. But since then, he has been more discreet. Could the fault be a tightening of surveillance? Already, Interpol had put the ex-CEO of Terraform Labs on its red list.
However, Do Kwon denied until last October that he was on the run, and claimed to be hiding out of fear for his safety. The silence of the CEO of Terra Labs is in any case particularly notable, and shows that the net could be tightening. The fraud he is accused of by the SEC amount to several tens of billions of dollars.
It is therefore all the more surprising to see the communications of Terra Labs, which seem to ignore these ongoing cases. At the beginning of February, the company’s communications officer thus affirmed that Do Kwon continued to contribute to the project… And Terra Labs even affords the luxury of hiring new collaborators. But if the investigation by the SEC and the FBI succeeds, it could well call these plans into question.
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Source: Wall Street Journal
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Journalist at Cryptoast, I fell into the pot of cryptocurrencies a few years ago. I am passionate about the innovative technologies that stem from the blockchain and I like to find the most crispy information to share with you.
Marine Debelloir
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