PANews reported on December 21 that, according to DL News, Jump Trading's subsidiary Tai Mo Shan Ltd. will pay $123 million to the U.S. Securities and Exchange Commission as a settlement to resolve accusations from misled investors during the collapse of TerraUSD. It is reported that the company made significant purchases during the collapse of TerraUSD to support the stablecoin's peg to $1, allegedly engaging in market fraud.
According to reports, the U.S. Securities and Exchange Commission has accused the company of conducting transactions worth $20 million, leading investors to make incorrect judgments about the stability of TerraUSD. The regulator also emphasized the company's role in underwriting the related tokens Luna of TerraUSD, claiming it was involved in the issuance of unregistered securities. This settlement stems from Jump Crypto's participation in Terraform Labs' operations, from which it allegedly profited over $1 billion.
