The US Department of Justice has investigated two major trading firms, Jump Trading and Jane Street, over plans for a possible bailout of Terra Networks. Failed Algorithmic Stablecoin TerraUSD ,ast,
according to bloomberg reports Since Monday, prosecutors are now looking into group chat conversations on Telegram with participants of Jane Street and Jump Trading. The conversation was reportedly about a possible bailout of TeraUSD.
The report cited a “person familiar with the matter who did not wish to be identified”.
The report states that so far no one has been accused of any wrongdoing as a result of the investigation of the chat messages. It also said that scrutiny does not mean that allegations will be made.
The potential bailout of UST that was discussed never actually happened, and UST collapsed in May last year, resulting in holders losing most of their money.
Terraform Labs team members inquired
Meanwhile, The Wall Street Journal reports said Monday that officials from the FBI and the US District Court for the Southern District of New York (SDNY) have already questioned former team members of TerraForm Labs, the company in charge of development on the Terra blockchain.
The inquiry has reportedly brought authorities closer to pressing criminal charges in the US against Terra founder Do Kwon, who is still on the run from south korean authorities,
Kwon is wanted in South Korea on charges of violating the Capital Markets Act and committing fraud, charges he denies and has called “politically motivated”.
SEC files lawsuit
Questioned by US authorities after the Securities and Exchange Commission (SEC) in February sued Do Kwon and TerraForm Labs in a New York court for “orchestrating a multi-billion dollar crypto asset securities fraud […],
The SEC’s lawsuit and the Justice Department’s investigation cover similar areas, Wall Street Journal sources said.
Do Kwon’s whereabouts unknown
Do Kwon’s whereabouts have remained a mystery since last year, but some experts have suggested that the South Korean national may be hiding in serbia, Serbia has never signed an extradition treaty with South Korea, and experts say without it it would be difficult for South Korean prosecutors to apprehend him.
Earlier this year, a group of South Korean officials traveled to Serbia to locate Do Kwon. Unfortunately for the authorities, efforts to locate Kwon have so far been unsuccessful.