Golden Finance reports that Jump Trading's cryptocurrency division, Tai Mo Shan Ltd., has agreed to pay $123 million to settle U.S. regulators' allegations of misleading investors about the stability of its TerraUSD algorithmic stablecoin. The U.S. Securities and Exchange Commission stated in a release on Friday that the company also resolved allegations of violating securities laws when underwriting TerraUSD's sister token, Luna. Tai Mo Shan did not admit or deny the agency's allegations when agreeing to the settlement. TerraUSD was supposed to achieve a constant value of $1 through a complex algorithm involving Luna and trader incentives. The SEC stated that, in reality, Tai Mo Shan's significant buying activity helped stabilize the coin, deceiving the market into believing that the algorithmic mechanism was functioning.

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