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Tai Mo Shan Settles with SEC for $123 Million Over TerraUSD Collapse
Tai Mo Shan, a subsidiary of Jump Crypto, agreed to pay $123 million to settle charges with the United States Securities and Exchange Commission (SEC) on Dec. 20 for misleading investors about the stability of the TerraUSD (UST) algorithmic stablecoin before its collapse.
The SEC revealed that Tai Mo Shan had an agreement with Terraform Labs in 2021 to purchase Terra LUNA at a steep discount.
Additionally, Tai Mo Shan bought approximately $20 million in UST to maintain the stablecoin’s 1:1 peg with the US dollar.
SEC Chair Gary Gensler remarked:
“The impact reverberated throughout the crypto markets, eventually costing the savings of countless investors. Regardless of the labels, crypto market participants should comply with the securities laws where applicable and not deceive the public.”
The Collapse of TerraUSD
TerraUSD, once the third-largest stablecoin by market capitalization, collapsed in May 2022, causing widespread disruption in the crypto market.
It was an algorithmic stablecoin that maintained its dollar peg through software and digital asset collateral.
The collapse began on May 8, 2022, when a whale dumped around $285 million in UST, causing the stablecoin to lose its peg and drop to $0.98.
By May 10, UST plunged further to $0.67, triggering liquidations among leveraged traders and sparking fear and uncertainty among investors.
As UST’s market capitalization exceeded the underlying LUNA reserves, it became clear that the stablecoin lacked sufficient collateral, leading to its complete collapse as panic selling ensued.
The fallout prompted a formal investigation of Terraform Labs and its founder, Do Kwon, by U.S. authorities, resulting in charges and a $4.4 billion settlement.
The collapse also spurred regulatory reforms like the Lummis-Gillibrand Stablecoin Act of 2024, which banned algorithmic stablecoins.
#TaiMoShan #SECSettlement #TerraUSDCollapse #CryptoRegulation #SEC $LUNC $USTC $BTC
Tai Mo Shan, a subsidiary of Jump Crypto, agreed to pay $123 million to settle charges with the United States Securities and Exchange Commission (SEC) on Dec. 20 for misleading investors about the stability of the TerraUSD (UST) algorithmic stablecoin before its collapse.
The SEC revealed that Tai Mo Shan had an agreement with Terraform Labs in 2021 to purchase Terra LUNA at a steep discount.
Additionally, Tai Mo Shan bought approximately $20 million in UST to maintain the stablecoin’s 1:1 peg with the US dollar.
SEC Chair Gary Gensler remarked:
“The impact reverberated throughout the crypto markets, eventually costing the savings of countless investors. Regardless of the labels, crypto market participants should comply with the securities laws where applicable and not deceive the public.”
The Collapse of TerraUSD
TerraUSD, once the third-largest stablecoin by market capitalization, collapsed in May 2022, causing widespread disruption in the crypto market.
It was an algorithmic stablecoin that maintained its dollar peg through software and digital asset collateral.
The collapse began on May 8, 2022, when a whale dumped around $285 million in UST, causing the stablecoin to lose its peg and drop to $0.98.
By May 10, UST plunged further to $0.67, triggering liquidations among leveraged traders and sparking fear and uncertainty among investors.
As UST’s market capitalization exceeded the underlying LUNA reserves, it became clear that the stablecoin lacked sufficient collateral, leading to its complete collapse as panic selling ensued.
The fallout prompted a formal investigation of Terraform Labs and its founder, Do Kwon, by U.S. authorities, resulting in charges and a $4.4 billion settlement.
The collapse also spurred regulatory reforms like the Lummis-Gillibrand Stablecoin Act of 2024, which banned algorithmic stablecoins.
#TaiMoShan #SECSettlement #TerraUSDCollapse #CryptoRegulation #SEC $LUNC $USTC $BTC
Tai Mo Shan Settles with SEC for $123 Million Over TerraUSD Collapse
Tai Mo Shan, a subsidiary of Jump Crypto, agreed to pay $123 million to settle charges with the United States Securities and Exchange Commission (SEC) on Dec. 20 for misleading investors about the stability of the TerraUSD (UST) algorithmic stablecoin before its collapse.
The SEC revealed that Tai Mo Shan had an agreement with Terraform Labs in 2021 to purchase Terra LUNA at a steep discount.
Additionally, Tai Mo Shan bought approximately $20 million in UST to maintain the stablecoin’s 1:1 peg with the US dollar.
SEC Chair Gary Gensler remarked:
“The impact reverberated throughout the crypto markets, eventually costing the savings of countless investors. Regardless of the labels, crypto market participants should comply with the securities laws where applicable and not deceive the public.”
The Collapse of TerraUSD
TerraUSD, once the third-largest stablecoin by market capitalization, collapsed in May 2022, causing widespread disruption in the crypto market.
It was an algorithmic stablecoin that maintained its dollar peg through software and digital asset collateral.
The collapse began on May 8, 2022, when a whale dumped around $285 million in UST, causing the stablecoin to lose its peg and drop to $0.98.
By May 10, UST plunged further to $0.67, triggering liquidations among leveraged traders and sparking fear and uncertainty among investors.
As UST’s market capitalization exceeded the underlying LUNA reserves, it became clear that the stablecoin lacked sufficient collateral, leading to its complete collapse as panic selling ensued.
The fallout prompted a formal investigation of Terraform Labs and its founder, Do Kwon, by U.S. authorities, resulting in charges and a $4.4 billion settlement.
The collapse also spurred regulatory reforms like the Lummis-Gillibrand Stablecoin Act of 2024, which banned algorithmic stablecoins.
No information published in Crypto Intelligence News constitutes financial advice; crypto investments are high-risk and speculative in nature.
#TaiMoShan #SECSettlement #TerraUSDCollapse #CryptoRegulation #SEC $LUNC $USTC $BTC
The SEC revealed that Tai Mo Shan had an agreement with Terraform Labs in 2021 to purchase Terra LUNA at a steep discount.
Additionally, Tai Mo Shan bought approximately $20 million in UST to maintain the stablecoin’s 1:1 peg with the US dollar.
SEC Chair Gary Gensler remarked:
“The impact reverberated throughout the crypto markets, eventually costing the savings of countless investors. Regardless of the labels, crypto market participants should comply with the securities laws where applicable and not deceive the public.”
The Collapse of TerraUSD
TerraUSD, once the third-largest stablecoin by market capitalization, collapsed in May 2022, causing widespread disruption in the crypto market.
It was an algorithmic stablecoin that maintained its dollar peg through software and digital asset collateral.
The collapse began on May 8, 2022, when a whale dumped around $285 million in UST, causing the stablecoin to lose its peg and drop to $0.98.
By May 10, UST plunged further to $0.67, triggering liquidations among leveraged traders and sparking fear and uncertainty among investors.
As UST’s market capitalization exceeded the underlying LUNA reserves, it became clear that the stablecoin lacked sufficient collateral, leading to its complete collapse as panic selling ensued.
The fallout prompted a formal investigation of Terraform Labs and its founder, Do Kwon, by U.S. authorities, resulting in charges and a $4.4 billion settlement.
The collapse also spurred regulatory reforms like the Lummis-Gillibrand Stablecoin Act of 2024, which banned algorithmic stablecoins.
No information published in Crypto Intelligence News constitutes financial advice; crypto investments are high-risk and speculative in nature.
#TaiMoShan #SECSettlement #TerraUSDCollapse #CryptoRegulation #SEC $LUNC $USTC $BTC
*📉 "Stablecoin, Katanya? 🤔
Tai Mo Shan Ltd. (bagian dari Jump Trading) baru saja setuju bayar cash out $123 juta ke SEC karena klaim mislead soal TerraUSD! 🚨 Regulator bilang mereka bikin pasar percaya kalau mekanisme algoritmik TerraUSD itu stabil, padahal stabilitasnya 'dibantu' lewat pembelian besar-besaran mereka sendiri.
Dampaknya buat trader?
🔥 Kepercayaan tergerus: Banyak trader retail yang masuk karena percaya 'jaminan stabilitas', cuma akhirnya malah nyangkut parah.
💔 Belajar mahal soal DYOR: Kejadian ini jadi pengingat penting buat ngulik lebih dalam soal proyek sebelum FOMO.
🚀 Lesson learned: Transparansi itu segalanya di kripto. Kalau nggak jelas siapa yang 'main belakang,' risikonya balik ke kita.
#CryptoNews #TerraUSD #SECSettlement #TraderAlert $LUNA
Tai Mo Shan Ltd. (bagian dari Jump Trading) baru saja setuju bayar cash out $123 juta ke SEC karena klaim mislead soal TerraUSD! 🚨 Regulator bilang mereka bikin pasar percaya kalau mekanisme algoritmik TerraUSD itu stabil, padahal stabilitasnya 'dibantu' lewat pembelian besar-besaran mereka sendiri.
Dampaknya buat trader?
🔥 Kepercayaan tergerus: Banyak trader retail yang masuk karena percaya 'jaminan stabilitas', cuma akhirnya malah nyangkut parah.
💔 Belajar mahal soal DYOR: Kejadian ini jadi pengingat penting buat ngulik lebih dalam soal proyek sebelum FOMO.
🚀 Lesson learned: Transparansi itu segalanya di kripto. Kalau nggak jelas siapa yang 'main belakang,' risikonya balik ke kita.
#CryptoNews #TerraUSD #SECSettlement #TraderAlert $LUNA