Do Kwon denies that the market maker Jump Trading restored UST to $1 in 2021

ChainCatcher news, according to a report by CoinDesk, documents submitted to a New York court on Wednesday indicate that the legal case against Do Kwon and his company Terraform Labs may hinge on the role of the market maker Jump Trading. This market maker appears to have made a profit of $1.28 billion during the collapse of its ecosystem. Do Kwon told investors that the token maintained its value of $1 due to its automated algorithm, but SEC experts stated that this was actually due to Jump intervening in the market at Terraform's request.

According to a letter from Do Kwon's team to the Singapore Supreme Court, "the defendants deny these allegations and claim that Jump's trading in UST was not the reason for the peg restoration in May 2021. The decoupling in May 2022 was the result of third parties deliberately shorting UST, leading to its price decoupling, and involved direct public intervention to combat the short-selling." Do Kwon's defense team also argued that the U.S. Securities and Exchange Commission does not have jurisdiction because the assets involved are currencies, not securities.