The US Securities and Exchange Commission (SEC) has launched an investigation into the IHR.
SEC attorneys are investigating whether Terraform Labs violated the law for securities and investment products, according to Bloomberg’s source.
The collapse of the UST that began on May 7 caused a huge shock to the crypto industry. Following the incident, US Treasury Secretary Janet Yellen stated that the incident revealed the dangers of dollar-pegged stablecoins. US Currency Controller Michael Hsu called it a “wake-up call”.
The SEC investigation may further put pressure on Terraform and its CEO, Do Kwon.
Singapore-based Terraform Labs said in a statement that it was not aware of any SEC investigations into the IHR.
