Techub News reports that the U.S. Securities and Exchange Commission (SEC) has charged Jump Trading's wholly-owned subsidiary Tai Mo Shan with misleading investors about the stability of Terra USD (UST), an algorithmic stablecoin issued by Terraform Labs PTE Ltd. (Terraform). The Commission also charged Tai Mo Shan with acting as a statutory underwriter by issuing and selling securities in unregistered transactions, with LUNA being the crypto asset issued and sold by Terraform.
As part of a settlement agreement, Tai Mo Shan has agreed to pay $73,452,756 in illicit 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 SEC's investigation, agreeing to cease violations of registration and fraud provisions.
