Justice Department Investigating TerraUSD Stablecoin Collapse 15
The U.S. Justice Department is probing last year's collapse of the TerraUSD stablecoin, raising the possibility of criminal charges being filed against the stablecoin's creator, Do Kwon, according to the Wall Street Journal, citing sources familiar with the matter. CoinDesk reports: The FBI and the Southern District of New York have interviewed former employees of Terraform Labs, the company behind TerraUSD, and sought to interview others, according to the Journal. Manhattan federal prosecutors are also examining chat-group discussions among prominent trading firms Jump Trading Group, Jane Street Group and failed FTX affiliate Alameda Research involving a potential bailout of TerraUSD, according to a separate report from Bloomberg, citing a person familiar with the matter.
Such a bailout never took place, but the investigation is seeking to determine whether the firms were involved in possible market manipulation. TerraUSD and its sister token, Luna, both eventually collapsed, setting off a series of high-profile failures of prominent crypto firms, including hedge fund Three Arrows capital, Voyager Digital and FTX. The Department of Justice previously alleged that an unnamed crypto firm -- believed to be Jump -- had bailed out TerraUSD once before, in an indictment against FTX founder Sam Bankman-Fried. In February, the SEC filed a civil fraud lawsuit against Kwon and Terraform Labs, accusing them of misleading investors about TerraUSD's risks.
Such a bailout never took place, but the investigation is seeking to determine whether the firms were involved in possible market manipulation. TerraUSD and its sister token, Luna, both eventually collapsed, setting off a series of high-profile failures of prominent crypto firms, including hedge fund Three Arrows capital, Voyager Digital and FTX. The Department of Justice previously alleged that an unnamed crypto firm -- believed to be Jump -- had bailed out TerraUSD once before, in an indictment against FTX founder Sam Bankman-Fried. In February, the SEC filed a civil fraud lawsuit against Kwon and Terraform Labs, accusing them of misleading investors about TerraUSD's risks.
Amazing (Score:2)
Re: (Score:2, Redundant)
USD "stability" is provided by corruption, warmongering, and a massive array of QE printing presses.
Every single one of those things is a destabilizing influence of a currency. It's almost like you should read an economics book instead of getting your monetary ideas from bitcoin bros.
Re: (Score:2)
USD "stability" is provided by corruption, warmongering, and a massive array of QE printing presses.
Every single one of those things is a destabilizing influence of a currency. It's almost like you should read an economics book instead of getting your monetary ideas from bitcoin bros.
Thank you for demonstrating your "capability" regarding the finer rules of grammar and sarcasm.
Re: (Score:2)
USD "stability" is provided by corruption, warmongering, and a massive array of QE printing presses.
Every single one of those things is a destabilizing influence of a currency. It's almost like you should read an economics book instead of getting your monetary ideas from bitcoin bros.
You make the first post, some kook answers you, you reply, and some brain dead choad with mod points gives you a -1 redundant?
Sigh.. The actual third post, and it is ruled redundant? Redundant to what?
By the way - you are 100 percent correct.
Re: (Score:2)
...By the way - you are 100 percent correct.
Really?
USD "stability" is provided by corruption, warmongering, and a massive array of QE printing presses.
Take a good hard look at the common use of quotations. I was being sarcastic. No shit they're destabilizing. All the more reason people shouldn't have assumed "stablecoin" implied any stablity in the first damn place.
US banking pulled Too Big To Fail out of taxpayers asses, and the house of cards formerly known as the US Stock Market will likely reinforce that corruption soon. Again.
Re: (Score:2)
...By the way - you are 100 percent correct.
Really?
USD "stability" is provided by corruption, warmongering, and a massive array of QE printing presses.
Take a good hard look at the common use of quotations. I was being sarcastic.
A nice simple - /s - would go a long way toward letting people know your meaning. There is no ambiguity with the /s.
Re: (Score:2)
You probably wouldn't enjoy life very much if the $US acted like TerraUSD.
Re: (Score:2)
Your point is not a very good one, because the $US has been pretty stable lately, but these crypto coins fall over like drunks on Saturday night. You probably wouldn't enjoy life very much if the $US acted like TerraUSD.
Oh, I'm quite certain TerraUSD would enjoy all kinds of "stability" if it had another few trillion to add to a tire fire stabilization excuse we call the national debt.
$US death by intoxication wouldn't make life good for a lot of people otherwise. You act like Greed knows their limits. History has proven otherwise. Repeatedly. Watch and see.
My point stands.
Re: (Score:2)
Could it be that this stablecoin is not entirely stable?
Of course it's not entirely stable. [youtube.com] It's a big space slug that eats all your money.
Re: Amazing (Score:5, Funny)
People keep misunderstanding this term. Itâ(TM)s called a stablecoin because of the way it smells.
If you can't depend on stablecoin... (Score:2)
There's always StablerCoin:
https://en.wikipedia.org/wiki/... [wikipedia.org]
Surely you can see the Snake's visage on your currency ?
This happens once every decade. (Score:4, Interesting)
Well, it’s definitely stompin’ time. Pop some corn and enjoy the show. The entire crypto, social-network, internet ecosystem is in the process of getting schooled in the old-timely power of government institutions and financial controls. Stuff that our civilization has been putting in place over the last f*c&ing century is finally starting to move. Our laws. Our courts. Our regulators. The IRS. The Fed. The justice department. It all reacts really, REALLY slowly. That’s by deliberate design, in order to prevent any one single group from seizing control. But once this stuff gets going, it’s got a LOT of momentum.
The crypto bros, everyone in the fraudulent “stablecoin” ecosystem, and the so-called “banks” and “investment houses” that built themselves on top of that pile of sand. The only things that’ll survive are the ones that can withstand the stompin’
I'm beginning to smell a big fat commie rat (Score:2)
And I bet if we poke at this case enough we'll turn up some people with Russian sounding names, and perhaps connections to the Russian motherland itself. Putin lines his pockets while Uncle Sam has to foot the bill.
I say it's time to let the FBI and the NSA take the gloves off, and provide the Justice Department with some names.
Buck Turgidson: "I'm beginning to smell a big fat commie rat."
https://www.youtube.com/watch?... [youtube.com]