Crypto news

The SEC has filed a case against UST Stablecoin

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

The regulator is investigating whether the company behind UST, Terraform Labs, violated federal investor protection laws when promoting the coin, according to the report.

Terraform Labs representatives said they were unaware of an SEC investigation into UST.

Also the media reported that the SEC questioned employees of the company and found that a few months before the collapse of Terra, the head of Terraform Labs Do Kwon began transferring about $80 million monthly from the company’s funds to “dozens of cryptocurrency wallets.”

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