Jump Crypto subsidiary Tai Mo Shan pays damages and settles with the U.S. Securities and Exchange Commission (SEC)
Tai Mo Shan is seeking $123 million in damages for allegedly misleading investors about the stability of the TerraUSD (UST) algorithmic stablecoin.
According to the SEC, Tai Mo Shan acquired Terra (LUNA) significantly in 2021 through an agreement with TerraForm Labs.
Tai Mo Shan then purchased approximately $20 million worth of UST to maintain the algorithmic stablecoin's 1:1 USD peg.
SEC Chairman Gary Gensler said of the UST collapse, "The impact of this incident has rippled throughout the cryptocurrency market, wiping out the savings of many investors. Regardless of the label,
"Cryptocurrency market participants must comply with applicable securities laws and ensure they do not mislead the public," he said. TerraUSD is a software- and digital asset-backed cryptocurrency that allows users to trade in U.S. dollars.
It was an algorithmic stablecoin that maintained a peg to the Bitcoin Cash (BTC) until it collapsed in May 2022. At the time, TerraUSD was the third-largest stablecoin by market capitalization.
In the aftermath of the Terra Ecosystem collapse, Terraform Labs was eventually shut down after reaching an agreement with the SEC. The collapse of TerraUSD in May 2022
The Lummis-Gillibrand Stablecoin of 2024 sent shock waves through the cryptocurrency community and had a major impact on stablecoin regulation.
Bills like the Act include provisions banning algorithmic stablecoins.
2024/12/23 16:03 KST
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