U.S. SEC: Jump Trading profited $1 billion through secret trades with Terraform Labs

ChainCatcher news, according to The Wall Street Journal, the U.S. Securities and Exchange Commission (SEC) released a court document last Friday as part of the fraud lawsuit against Do Kwon and his company Terraform Labs. The document confirms that cryptocurrency market maker Jump Trading entered into a secret agreement a year before the collapse of the TerraUSD cryptocurrency, and that Jump Trading earned approximately $1 billion in profits through its dealings with Terraform Labs.

Emails from January 2020 revealed the transaction: "Jump will enhance the liquidity of Terra and Luna and will acquire Luna at prices of 30 cents, 40 cents, and 50 cents over the next three years." Luna soared to over $90 at the end of 2021 and the beginning of 2022. The SEC also released a revised version of the secret agreement from July 2021, in which Terraform Labs promised to transfer 61.5 million Luna to Jump each month. (source link)