According to the source, the Authority is investigating whether the publications surrounding Terraform Labs’ “stable” currency currency, which we call here Terra Terra-dollar, and originally called TerraUSD (or UST for short), were a violation of the rules concerning the protection of consumers and investors in securities – as far as Apparently due to the same claim that its value is linked to the dollar, which was proven to be disconnected from reality about a month ago, then the currency lost its linkage to the dollar and plunged within a few days to zero value, erasing tens of billions of dollars to investors.
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As you may recall, about a week after the beginning of May, TerraUSD lost the linkage, and while the company was delaying the decision on what measures to take to return it to a value of one dollar, both it and its regular companion cryptocurrency, Terra (LUNA), began to plummet. Prior to the collapse, the market value of each of the two currencies was around $ 20 billion, so their collapse cost investors about $ 40 billion.