Jump Trading crypto subsidiary hit with $123m fine over TerraUSD scandal

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Jump Trading’s Tai Mo Shan pays $123 cardinal successful a TerraUSD-linked colony with the SEC.
SEC alleges its trades created mendacious stableness during the stablecoin’s last days.

Jump Trading’s Tai Mo Shan Ltd. volition wage $123 cardinal to settee allegations it misled investors by stabilising TerraUSD during its collapse, the Securities and Exchange Commission said Friday.

The firm, tied to Jump’s crypto unit, made important purchases to prop up the failed stablecoin’s $1 peg, deceiving the market.

The SEC accused Tai Mo Shan of negligence, citing its $20 cardinal successful trades that created a mendacious content of TerraUSD’s stability.

The regulator besides highlighted its relation successful underwriting Luna, TerraUSD’s sister token, which it alleges was offered arsenic an unregistered security.

“Tai Mo Shan should person known its trading misled the investing nationalist to judge Terraform’s arbitrage mechanics unsocial stabilised the price,” the SEC wrote successful its cease-and-desist order.

The colony stems from Jump Crypto’s engagement successful Terraform Labs’ operations, wherever the steadfast allegedly profited by implicit $1 billion.

Terraform’s illness successful May 2022 erased $40 cardinal successful capitalist assets and was 1 of the crypto industry’s astir infamous disasters.

Jump Crypto played a ample relation successful Terraform Labs’ ecosystem, with Tai Mo Shan’s trades propping up TerraUSD astatine a captious infinitesimal of marketplace stress.

These actions, the SEC claims, gave investors a mendacious consciousness of information astir the algorithmic stablecoin’s viability.

The allegations besides widen to Luna, which the regulator considers a information and whose offerings Tai Mo Shan helped underwrite.

Kanav Kariya, who led Jump Crypto during its engagement successful Terraform Labs, stepped down successful June 2024 amid a CFTC probe.