Jump Crypto's subsidiary, Tai Mo Shan, has reached a $123 million settlement with the SEC for misleading investors about the TerraUSD stablecoin. Tai Mo Shan, a key player in Terra's ecosystem, was involved in deceptive practices during the UST depegging crisis. The SEC accused the firm of falsely stabilizing UST and acting as a statutory underwriter for Terra Luna token. This led to significant investor losses and market disruption. The settlement includes a payment of $123 million and a cease-and-desist order. This follows similar actions against Terraform and its founder for fraud and unregistered securities offerings. The incident highlights the importance of compliance with securities laws in the crypto market to protect investors. Tai Mo Shan did not admit or deny the SEC's findings but agreed to the terms to avoid future violations. Read more AI-generated news on: https://app.chaingpt.org/news

#SEC