The U.S. has begun to investigate the collapse of the UST

The U.S. Securities and Exchange Commission (SEC) has launched an investigation into whether Terra’s marketing violated investor protection rules. It was reported by Bloomberg, citing an anonymous source. Information material from project cryptodefi​x.

SEC lawyers are investigating Terrafom Labs for compliance with rules regarding securities and investment products. No one at the company has been charged with wrongdoing in connection with the UST plunge. Also, Terrafom Labs stressed that they knew nothing about the SEC investigation.

Recall that the stablecoin UST collapsed sharply on May 8. At that time, the token lost its peg to the U.S. dollar because of a single transaction of $300 million. Now the value of altcoin fell to $0.01. At the end of May, the company launched Terra 2.0 project and distributed the token to UST holders.