According to BlockBeats, on December 21, the U.S. Securities and Exchange Commission (SEC) stated that Jump Trading subsidiary Tai Mo Shan Ltd. will pay $123 million to settle accusations of misleading investors by stabilizing the coin during the collapse of TerraUSD.
The company related to Jump's cryptocurrency division made significant purchases during the collapse of TerraUSD to support the failed stablecoin's $1 peg, thereby misleading the market.
The SEC accuses Tai Mo Shan of negligence, pointing out that it conducted trades worth $20 million that created a false impression of TerraUSD's stability.
Regulators also emphasized the company's role in underwriting TerraUSD's sister token, Luna, claiming it was involved in the issuance of unregistered securities. (DL News)