The US Justice Department has probed the two major trading firms Jump Trading and Jane Street about plans for a potential bailout of the Terra network’s failed algorithmic stablecoin TerraUSD (UST).
According to Bloomberg report from Monday, prosecutors are now looking into group chat conversations on Telegram with participants from Jane Street and Jump Trading. The conversations were reportedly about a potential bailout of TerraUSD.
The report cited a “person familiar with the matter who didn’t want to be identified.”
The report noted that no one has so far been accused of any wrongdoing as a result of the scrutiny of the chat messages. It also said that the scrutiny does not necessarily mean that charges will be brought.
The potential bailout of UST that was discussed never actually took place, and UST collapsed in May of last year with holders losing most of their money as a result.