A U.S. court has decided that Jump Crypto, identified as a "third party" in the SEC's ongoing case against Terraform Labs, is permitted to confidentially submit specific information to the court, as outlined in a November 28 order.
In February, the SEC filed a lawsuit against Terraform Labs and its founder and former CEO, Do Kwon, alleging the sale of unregistered securities and involvement in fraud that raised billions of dollars. The associated stablecoin, TerraUSD (UST), drastically lost its value in May 2022, and it is now valued at just $0.04 under the ticker USTC.
Judge Jed S. Rakoff clarified that the court has the authority, at its discretion, to make these filings public in the future. If this occurs, Jump Crypto's legal team will be notified, giving them the opportunity to raise objections.
While Jump Crypto is not a defendant in the Terraform Labs case, the SEC believes that Jump played a role in the collapse of the UST stablecoin. According to an October letter from Terraform Labs' defense, the SEC alleges that Jump Crypto was involved in a scheme to artificially boost the price of UST by purchasing substantial amounts of the unstable stablecoin when it deviated from dollar parity in May 2021. Terraform Labs denies these allegations, asserting that Jump Crypto's trading activities did not lead to UST's recovery in 2021 and that the decline in May 2022 resulted from deliberate attempts to short UST. They claim to have intervened publicly to counteract these actions.
#Roarstock #CryptoLegalities #TerraformLabsSEC #JumpCryptoCase #StablecoinSaga
$USTC $LUNC $LUNA