Last-minute DOJ probe into altcoin incidents is growing

In the cryptocurrency market, the agenda is very tense and the news is constant. The latest news comes from the United States again. U.S. officials who control the cryptocurrency market have even begun conducting autopsies on bad actors in the industry. All of this will lay the groundwork for the cryptocurrency regulations expected to take shape over the next 12 months.

US cryptocurrency survey

Citing people familiar with the matter, The Wall Street Journal reported that the Justice Department is investigating the collapse of TerraUSD stablecoin last year, putting pressure on South Korean cryptocurrency entrepreneur Do Kwon and raising the risk of criminal charges from the United States. The FBI and the Southern District of New York recently signed a contract with Kwon’s company, Terraform Labs Pte. Ltd. said his company had been questioning former team members in recent weeks and wanted to meet with others. The FBI and SDNY are part of the Department of Justice, and SDNY often leads high-profile prosecutions of financial crimes.

The SEC filed fraud charges against Kwon and Singapore-based Terraform Labs in Manhattan federal court last month. In the lawsuit, Kwon and the company are accused of misleading investors about the risks of TerraUSD, a stablecoin designed to protect the $1 price.

Jane Street and the cryptocurrency company Jump are also under investigation, according to Bloomberg.

Cryptocurrencies are under siege

The best way to lay the groundwork for restrictive policies ahead of regulation is to hunt down cryptocurrency scammers. That’s exactly what U.S. officials are doing. The algorithmic stablecoin launched by Kwon has caused more than $40 billion in investor assets to evaporate. Hundreds of billions of dollars of indirect impact on the cumulative value of crypto. In fact, the biggest disruption in 2022 is the LUNA crash, if you take into account the triggering role of companies such as FTX, Genesis, 3AC, Voyager, etc. in the bankruptcy process.

Quan had been in Singapore until his disappearance last year. Kwon left Singapore for Dubai in September and then Serbia, according to South Korean prosecutors. South Korean law enforcement officials visited Serbia earlier this year to cooperate with the Balkan country, a spokesman for Seoul’s Southern District Prosecutors Office said. The spokesman declined to comment further on the status of the South Korean investigation. Kwon has also not posted on his social media accounts since February. Now with Jump and Jane Street getting involved, we may see even more pressure on cryptocurrencies.

Information source: compiled from COIN-TURK by 0x information.Copyright belongs to the author Fatih Uçar, without permission, may not be reproduced

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