The US Department of Justice is investigating the collapse of the stablecoin TerraUSD – WSJ

(Reuters) – The US Department of Justice is investigating the collapse of the stablecoin TerraUSD over the past year, The Wall Street Journal reported Monday, citing people familiar with the matter.

The Federal Bureau of Investigation and the Southern District of New York (SDNY) have interviewed former team members at the company behind the stablecoin, the report said.

Terraform Labs did not immediately respond to a Reuters request for comment. A US Attorney’s Office spokesman for the SDNY declined to comment.

Last month, the US Securities and Exchange Commission accused Terraform founder Do Kwon of defrauding investors in what the regulator saw as a multi-billion dollar scheme.

(Reporting by Niket Nishant in Bengaluru; Additional reporting by Luc Cohen and Ananya Mariam Rajesh; Editing by Maju Samuel)