The US Justice Department has conducted an investigation into Jump Trading and Jane Street, two major trading firms, regarding potential plans for a bailout of the failed algorithmic stablecoin TerraUSD on the Terra network. Bloomberg reported that prosecutors are analyzing group chat conversations on Telegram where participants from both firms discussed a potential bailout of the stablecoin. No one has been accused of any wrongdoing, nor does the scrutiny guarantee that charges will be brought. UST collapsed in May of last year with holders losing the majority of their money. The questioning of former team members of Terraform Labs by FBI officials and the US District Court for the Southern District of New York (SDNY) has brought officials closer to pressing criminal charges against Terra founder Do Kwon, who is on the run from South Korean authorities. The SEC sued Do Kwon and Terraform Labs in a New York court for crypto asset securities fraud in February. Do Kwon’s whereabouts are unknown and experts suggest he could be hiding in Serbia.
