PANews December 21 news, the U.S. Securities and Exchange Commission (SEC) charged Jump Trading's wholly-owned subsidiary Tai Mo Shan with misleading investors about the stability of Terra USD (UST), a so-called 'algorithmic stablecoin' issued by Terraform Labs PTE Ltd. (Terraform). The Commission also charged Tai Mo Shan with acting as a statutory underwriter, issuing and selling securities in unregistered transactions, with LUNA being the cryptocurrency asset issued by Terraform, classified as securities for issuance and sale.
As part of the settlement agreement, Tai Mo Shan agreed to pay $73,452,756 in illegal gains, $12,916,153 in pre-judgment interest, and $36,726,378 in civil penalties. Tai Mo Shan neither admits nor denies the findings of the U.S. SEC's investigation and agrees to cease violations of registration and fraud regulations.
