The SEC is looking into a $60 billion Terra Implosion

The Securities and Exchange Commission in the United States is apparently investigating the Terra implosion.

SEC is investigating Terra
Terra Luna

According to Bloomberg, the US Securities and Exchange Commission has initiated an investigation into the Terra implosion.

The Securities and Exchange Commission is investigating if Terraform Labs, the company behind the failed blockchain, broke any federal investor protection requirements.

Terraform Labs is unaware that Terra's LUNA coin is being investigated. Terra co-founder Do Kwon lost an appeal to stop the government from issuing subpoenas in connection with another ongoing investigation into the Mirror Protocol on Wednesday. Last November, the SEC served Kwon in the middle of a cryptocurrency conference.

The SEC was looking into whether the Mirror Protocol, which allows corporations to issue synthetic assets that look like their stock, violated securities laws.

The agency was sued by the controversial creator, who claimed that it had broken its own standards by improperly serving the subpoena. It further claimed that because Terraform Labs is based in South Korea, the agency's jurisdiction was limited.

The Second Circuit Court of Appeals, on the other hand, ruled that the SEC's subpoenas are valid. As a result, Terraform Labs must work with the regulator.

Terraform Labs and Kwon are dealing with a host of legal issues, including many active SEC investigations.

South Korean officials have also honed down on the failing cryptocurrency initiative, according to U.Today. Embezzlement claims against an unknown employee are being investigated by the local police.

Meanwhile, Terraform Labs co-founder Daniel Shin has disputed the business's fraud allegations, arguing that the company never intended to deceive users.