The U.S. Securities and Exchange Commission (SEC) alleges that Jump Trading earned $1.2 billion from a deal to boost Terra’s liquidity before it collapsed. The agency filed court papers Friday naming Jump as the anonymous beneficiary mentioned in its civil suit against Kwon in December. Jump allegedly bought “tens of millions” of dollars in the LUNA (now LUNC) coin to restore the broken dollar peg of its sister coin TerraUSD (UST). Kwon said Terra maintained its $1 value algorithmically rather than through Jump’s contribution. According to SEC court filings, Kwon confidentially revealed Jump’s investment in 2020 to investors in Terraform Labs, the entity backing TerraUSD. An email outlined a three-year agreement with crypto-linked Jump affiliate Tai Mo Shan. LUNA’s price increased from $0.20 in 2020 to above $90 in 2022, allegedly earning Jump over $1 billion. In response to the charges, Kwon’s lawyers said Jump’s LUNA buys only accounted for 6% of Terraform’s transactions used to restore UST’s peg. TerraUSD fell to mere pennies in May 2022 after large weekend withdrawals broke its dollar peg, sending itself and its sister coin, LUNA, tumbling. The two assets algorithmically kept TerraUSD at $1. The SEC and the U.S. Department of Justice have charged Kwon with the $40 billion collapse of TerraUSD. The Stanford alumnus remains under Montenegrin house arrest pending a passport fraud trial.
Full story : Do Kwon Failed to Reveal $1 Billion Deal With Jump Trading, Says SEC.
