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News Explorer — SEC Alleges Jump Trading Propped Up TerraUSD Prior to Collapse

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May 16, 5:41 pm
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SEC Alleges Jump Trading Propped Up TerraUSD Prior to Collapse

In November 2019, Jump Trading's subsidiary Tai Mo Shan Limited loaned 30 million LUNA to Terraform Labs, the project behind the algorithmic stablecoin UST. According to the SEC, Terraform and its CEO, Do Kwon, allowed Jump Trading to purchase LUNA tokens at prices far below the open market rate. An email from Kwon to investors in January 2020 mentioned an "important arrangement" with Jump Trading, which could have allowed them to realize a profit of $1.28 billion.

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