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Tai Mo Shan Settles with SEC for $123 Million The U.S. Securities and Exchange Commission (SEC) announced that Tai Mo Shan Ltd., an affiliate of cryptocurrency market maker Jump Trading, has agreed to pay $123 million to settle charges related to the collapse of TerraUSD (USTC) and Luna (LUNA). Misleading Investors The SEC alleges that Tai Mo Shan misled investors about the algorithmic stablecoin TerraUSD (USTC, formerly UST). The company's massive purchases of USTC created the impression that the coin was pegged to the U.S. dollar and that its algorithmic mechanisms were working. Securities Law Violations The SEC also charged Tai Mo Shan with violating securities laws in its acquisition of Luna. The company failed to register its purchase of Luna as required by law. SEC Enforcement Action Gurbir Grewal, the SEC's Division of Enforcement Director, stated that Tai Mo Shan's actions "undermined the integrity of the cryptocurrency market." The settlement sends a message that companies must comply with securities laws and avoid misleading investors. Tai Mo Shan's Response Tai Mo Shan has not admitted or denied the SEC's allegations. However, the company has agreed to pay the $123 million settlement to resolve the charges. This action is a significant development in the SEC's ongoing crackdown on cryptocurrency fraud and misconduct. It demonstrates the agency's commitment to protecting investors in this rapidly evolving market.