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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 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 Settles with SEC for $123 Million Over TerraUSD CollapseTai 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

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
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*📉 "Stablecoin, They Say? 🤔 Tai Mo Shan Ltd. (part of Jump Trading) just agreed to pay a $123 million cash out to the SEC over misleading claims about TerraUSD! 🚨 The regulator says they led the market to believe that TerraUSD's algorithmic mechanism was stable, when in fact its stability was 'helped' by their own massive purchases. The impact on traders? 🔥 Eroded trust: Many retail traders jumped in because they believed in the 'assurance of stability', only to end up getting stuck badly. 💔 Learned the hard way about DYOR: This incident is an important reminder to dig deeper into a project before FOMOing. 🚀 Lesson learned: Transparency is everything in crypto. If it's not clear who's 'playing behind the scenes,' the risk will come back to us. #CryptoNews #TerraUSD #SECSettlement #TraderAlert $LUNA
*📉 "Stablecoin, They Say? 🤔

Tai Mo Shan Ltd. (part of Jump Trading) just agreed to pay a $123 million cash out to the SEC over misleading claims about TerraUSD! 🚨 The regulator says they led the market to believe that TerraUSD's algorithmic mechanism was stable, when in fact its stability was 'helped' by their own massive purchases.

The impact on traders?
🔥 Eroded trust: Many retail traders jumped in because they believed in the 'assurance of stability', only to end up getting stuck badly.
💔 Learned the hard way about DYOR: This incident is an important reminder to dig deeper into a project before FOMOing.

🚀 Lesson learned: Transparency is everything in crypto. If it's not clear who's 'playing behind the scenes,' the risk will come back to us.

#CryptoNews #TerraUSD #SECSettlement #TraderAlert $LUNA
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