U.S. SEC: Former Jump Crypto CEO Allegedly Reached Secret Agreement with Do Kwon During Terra Collapse

ChainCatcher news, according to Blockworks, the U.S. SEC has begun investigating whether former Jump Crypto CEO Kanav Kariya entered into a secret agreement with Terraform Labs' Do Kwon during the collapse of the stablecoin TerraUSD. The SEC previously accused Do Kwon of "executing a fraudulent scheme" involving unregistered securities LUNA and UST, amounting to as much as $40 billion.

It is reported that in the testimony of Kariya released at the end of last month, SEC legal advisor Staren, who is responsible for the investigation, stated that Do Kwon and Kariya signed an agreement on May 23, 2021 (a few weeks after UST's depegging), under which Jump would help restore UST's peg by purchasing tokens. In exchange, Kwon would modify Jump's LUNA loan agreement and waive the exercise conditions. When asked whether Do Kwon agreed to the terms, Kariya declined to answer the question. The testimony was submitted to the court on October 28.