Deep Tide TechFlow News, December 21, according to official news, the U.S. Securities and Exchange Commission (SEC) announced a fine of $123 million against Jump Trading's wholly-owned subsidiary Tai Mo Shan Limited, due to misleading investors during the depegging of Terra USD (UST). The SEC pointed out that Tai Mo Shan reached an agreement with Terraform Labs in May 2021 when UST deviated from its $1 peg, to exchange UST for discounted purchase rights of LUNA tokens.
It is reported that Tai Mo Shan purchased over $20 million worth of UST at the time, attempting to restore its price peg. The SEC believes this behavior misled the market into thinking that Terra's algorithmic mechanism was functioning. In addition, the SEC also accused Tai Mo Shan of acting as a statutory underwriter for LUNA tokens from January 2021 to May 2022, distributing securities on U.S. trading platforms without registration.
