SEC fines Tai Mo Shan $123M for misleading investors about TerraUSD’s stability.
Tai Mo Shan violated laws by selling unregistered securities via LUNA token trades.
TerraUSD collapse exposes gaps in crypto transparency and regulatory oversight needs.
Deceptive practices surrounding TerraUSD (UST) have landed Tai Mo Shan Limited, a subsidiary of Jump Crypto Holdings LLC, in hot water with the SEC, resulting in a $123 million settlement. The Tai Mo Shan TerraUSD deception involved misleading investors about the stablecoin’s stability and selling unregistered securities.
This $123 million settlement serves as a stark reminder that the cryptocurrency market, often touted as a hub of financial innovation, can also be a breeding ground for costly scandals.
TerraUSD’s Downfall and Investor Deception
TerraUSD was introduced as a stablecoin pegged to the U.S. dollar, promising unwavering stability. Tai Mo Shan reassured investors that Terraform Labs’ algorithm ensured this peg. But, in May 2021, UST lost its dollar peg, eroding investor confidence.
Tai Mo Shan intervened with $20 million worth of trades to restore the peg temporarily. While the effort succe…
The post Tai Mo Shan’s TerraUSD Deception Turns Costly: SEC Imposes $123M Penalty appeared first on Coin Edition.
