Jump Trading's cryptocurrency subsidiary fined $123 million due to TerraUSD scandal

ChainCatcher news, the U.S. Securities and Exchange Commission (SEC) stated that Jump Trading subsidiary Tai Mo Shan Ltd. will pay $123 million to settle allegations of misleading investors by stabilizing the coin during the collapse of TerraUSD.

The company, related to Jump's cryptocurrency division, made significant purchases during the collapse of TerraUSD to support the failed stablecoin's peg to $1, thereby deceiving the market. The SEC accused Tai Mo Shan of negligence, noting that it executed trades worth $20 million that created a false impression of TerraUSD's stability.

The regulator also emphasized the company's role in underwriting TerraUSD's sister token Luna, claiming it was involved in the issuance of unregistered securities.