WSJ reporter Alexander Osipovich reported that former Jump Trading employee James Hunsaker took the stand in Terraform Labs' trial and said he had filed a complaint with the Securities and Exchange Commission (SEC) against his former employer.

Hunsaker worked at Jump Crypto before leaving to co-found Monad Labs. He said Jump and Terraform have entered into a deal aimed at accelerating the adoption of UST.

In May 2021, UST decoupled from the dollar. Then he was on a Zoom conference with colleagues. On this day, the head of Jump Crypto, Kanav Kariya, said that Do Kwon was going to transfer the rights to UST to the company.

After this, Jump Trading co-founder Bill DiSomma began encouraging traders to make “aggressive trades” and accumulate UST.

Hunsaker noted that Terra was an important project for Jump, so the company was willing to risk "a couple hundred million dollars."

This aggressive trading helped restore the peg in May 2021, allowing UST to survive for another year.

In those days, Kwon claimed that UST was “automatically self-healing,” deceiving investors.

Hunsaker left Jump in February 2022. In his testimony, he noted that he tried to publicize this situation anonymously on Reddit.

He filed a whistleblower complaint with the SEC in August 2022.

Hunsaker invested $200,000 of his own money into UST to earn a ~20% return on Anchor Protocol. He doubted the stability of UST, but believed that if necessary, he could quickly exit. He sold his UST on May 7 or 8, 2022, when deposits began.

The SEC previously stated that Jump received about $1 billion in profits from its cooperation with Terraform Labs.#LUNC✅ #UST #TerraClassic $here $ustc $moon