The FBI and the Southern District of New York have reportedly questioned former members of the Terraform Labs (TFL) team as part of a Justice Department-led investigation into the collapse of the TerraUSD stablecoin, The Wall Street Journal has reported citing sources.

The DOJ investigation is believed to be in line with the SEC lawsuit filed against the company and its management in February. Reportedly, the investigators are looking into the connection between the South Korean payment company Chai and the TFL blockchain.

According to the SEC, TFL CEO Do Kwon misled the public by claiming they processed Chai’s transactions using their network, when in fact they used “more traditional technology.”

US prosecutors are also said to be investigating correspondence between trading firms, including Jump Trading Group, Alameda Research and Jane Street Group, regarding the rescue of TerraUSD, as reported by Bloomberg News.