2024-12-23
Jump Trading's subsidiary, Tai Mo Shan,
has agreed to pay $123 million to settle charges from the U.S. Securities and
Exchange Commission (SEC) over its role in the TerraUSD (UST) stablecoin
collapse.
The SEC accused Tai Mo Shan of
misleading investors about the stability of UST and acting as a statutory
underwriter for the LUNA token, which was offered and sold as a security.
SEC fines Jump Trading subsidiary $123
million because Tai Mo Shan spent $20 million to help prop up the TerraUSD
stablecoin in May 2021.
In May 2021, following TerraUSD
stablecoin depegged, the token was able to repegged back to $1.
A subsidiary of Jump Trading's crypto
unit, Tai Mo Shan, was behind the repegged, it spent $20 million worth of
purchases to stabilize the price of the token, this incident allegedly
misleading investors in the token and its counterpart luna, according to the
SEC complaint.
The settlement includes $73.45 million in disgorgement, $12.92 million in prejudgment interest, and a $36.73 million civil penalty.
This case highlights the SEC's ongoing scrutiny of stablecoins
and their operators, emphasizing the importance of compliance with securities
laws in the crypto market.
