Media: SEC opens investigation into TerraUSD (UST) stablecoin

The U.S. Securities and Exchange Commission (SEC) has opened an investigation into the algorithmic stablecoin TerraUSD (UST), Bloomberg reports, citing sources familiar with the matter.

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According to the report, the regulator is determining whether Terraform Labs, the company behind UST, violated federal investor-protection laws in promoting the coin.

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A Terraform Labs spokesperson said they were not aware of any SEC investigation into UST.

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Also, reported that the SEC questioned company employees and found that, several months before Terra’s collapse, Terraform Labs’ Do Kwon began transferring around $80 million per month from company funds to dozens of cryptocurrency wallets.

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Separately, a U.S. court recently denied Do Kwon’s appeal and ordered him to cooperate with authorities’ investigation into the Mirror protocol.

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Earlier, after the Terra collapse, South Korean financial regulators held an emergency meeting to assess the consequences. According to media reports, local authorities began an investigation into Terraform Labs staff as part of the investigation.

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More on what happened to the project and its implications for the crypto industry — in our exclusive feature:

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