US SEC Launches Investigation into UST

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The US Securities and Exchange Commission (SEC) has opened an investigation into the algorithmic stablecoin TerraUSD (UST), Bloomberg has reported.

According to the publication, the regulator is investigating whether Terraform Labs, the company behind the stablecoin UST, violated federal investor protection laws during the promotion of the coin.

Terraform Labs representatives have said they were not aware of the SEC investigation into UST.

In addition, a US court has recently rejected the appeal of the head of Terraform Labs, Do Kwon, and has ordered him to cooperate with the investigation of the authorities regarding the Mirror protocol.

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