According to reports The US Department of Justice and the Federal Bureau of Investigation are investigating Terraform Labs and Do Kwon over possible fraud and market manipulation related to its collapsed stablecoin project.
The stablecoin suffered a significant price decline in June 2021, causing investors to lose a substantial amount of money. The authorities are reportedly examining whether Terraform Labs executives engaged in insider trading before the collapse. The company has denied any wrongdoing and is cooperating with the investigation.