• Home
  • Blockchain
  • Crypto
  • Defi
  • NFT
  • Trading
  • World News
  • Contact
What's Hot

How Rising Tobacco Prices are Affecting Smoking Cessation Around the World

March 8, 2023

Is it possible to buy NFT and help the Ukrainian army at the same time?

February 17, 2023

Ukraine Stands Strong: The SpendWithUkraine.com Initiative

February 2, 2023
Facebook Twitter Instagram
  • Home
  • Blockchain
  • Crypto
  • Defi
  • NFT
  • Trading
  • World News
  • Contact
CryptodailyNews24
  • Home
  • Blockchain
  • Crypto
  • Defi
  • NFT
  • Trading
  • World News
  • Contact
CryptodailyNews24
Home»Blockchain»SEC opens investigation into UST collapse
Blockchain

SEC opens investigation into UST collapse

Donald MunnBy Donald MunnJune 15, 2022Updated:September 29, 2022No Comments3 Mins Read
Share
Facebook Twitter LinkedIn Pinterest Email

According to press rumours, the US Securities and Exchange Commission (SEC) is investigating Terraform Labs and the collapse of the algorithmic stablecoin TerraUSD (UST).

SEC investigates loss of UST algorithmic stablecoin peg

According to the financial newspaper Bloomberg, which quoted an anonymous inside source at the SEC, the US financial markets watchdog agency, lawyers at the US regulator are closely examining whether or not the way Terraform Labs marketed UST violated federal investor protection rules. 

Again according to the source quoted by Bloomberg, the lawyers’ examination has almost reached its conclusion and there would be grounds to open a case against Terraform Lab, the issuer of the stablecoin, which collapsed a month ago, causing a loss of over $69 billion.

In short, it seems that behind the sudden collapse of the entire ecosystem created by the two South Koreans Daniel Shin and Do Kwon in 2018, aimed at developing digital payment platforms, there may be irregularities, fraud or activities that are in some way illegal.

It was only a few weeks ago that the South Korean authorities had also opened an investigation into the company, accusing it of having laundered $4.8 million through its own trust created ad hoc in South Korea.

On the other hand, the failure of the Terra project has alarmed the US financial and political authorities, who have long warned of the risks that stablecoins, or some of them, could pose to the stability of the financial markets. It is precisely for this reason that a new regulation of the cryptocurrency market is being considered as a matter of urgency, with a special focus precisely on stablecoins, which are supposed to be instruments for securing the digital asset market.

Terra’s failure and the need for clear regulation

Terraform Labs itself, two days ago saw its appeal against the SEC rejected by the US Court of Appeals. The investigation started back in September against Mirror Protocol, which is a DeFi platform that allows its users to trade assets reflecting synthetic versions of stocks such as Tesla, Microsoft or Apple. If Bloomberg’s rumour is confirmed, the company would now have to answer for two simultaneous investigations by the SEC.

Terraform Labs, which recently launched the Terra 2.0 project, which has already lost over 80% of its value in just a few days, has denied any news of an SEC investigation into its algorithmic stablecoin.

In this regard, Do Kwon stated:

“We are not aware of any SEC probes into Terrausd at this time – we’ve received no such communication from the SEC and are aware of no new investigation outside of that involving Mirror Protocol”.

The post SEC opens investigation into UST collapse appeared first on cryptodailynews24.com.

Share. Facebook Twitter Pinterest LinkedIn Tumblr Email
Donald Munn
Donald Munn
  • Website

Related Posts

Cryptocurrencies and startups related to mental health are important topics in today’s world, which have become especially relevant in the era of the COVID-19 pandemic

December 26, 2022

Premonitory signs of a bullish market, what does the VIX index show?

September 1, 2022

The Web3 Conference A Certified Carbon Neutral Event

September 1, 2022

Dubai issues regulations governing virtual asset marketing

September 1, 2022
Add A Comment

Comments are closed.

Advertisement
Top Posts

Subscribe to Updates

Get the latest sports news from SportsSite about soccer, football and tennis.

The latest news about Bitcoin, ICO, blockchain and fintech.

Top Insights

How Rising Tobacco Prices are Affecting Smoking Cessation Around the World

March 8, 2023

Is it possible to buy NFT and help the Ukrainian army at the same time?

February 17, 2023

Ukraine Stands Strong: The SpendWithUkraine.com Initiative

February 2, 2023
Get Informed

Subscribe to Updates

Get the latest creative news from FooBar about art, design and business.

  • Home
  • Blockchain
  • Crypto
  • Defi
  • NFT
  • Trading
  • World News
  • Contact
© 2023 cryptodailynews24.com Submit news release

Type above and press Enter to search. Press Esc to cancel.