The collapse of cryptocurrency exchange FTX and the demise of Sam Bankman-Fried (SBF) prompted authorities to re-examine the collapse of the Terra ecosystem. In May, Terra’s algorithmic stablecoin UST and its sister coin LUNA went into a death spiral, wiping $40 billion off the cryptocurrency market.
According to a report by The New York Times citing people familiar with the matter, U.S. prosecutors are rumored to be investigating SBF, FTX, and FTX’s sister trading platform, Alameda Research, to clarify whether SBF was involved in the collapse of UST and LUNA. On the other hand, Bloomberg News reported that FTX’s new CEO and bankruptcy lawyers met this week with Manhattan federal prosecutors investigating FTX’s collapse.
