Jump Crypto, a segment of the Jump Trading group, is currently facing scrutiny from the U.S. Securities and Exchange Commission (SEC).
Jump Crypto, a segment of the Jump Trading group, is currently facing scrutiny from the U.S. Securities and Exchange Commission (SEC) over its suspected involvement in a transaction with former Terraform Labs CEO Do Kwon. The SEC's inquiry is focused on whether Jump Crypto entered into an agreement in May 2021 to stabilize the peg of Terra USD (UST) to the U.S. dollar by acquiring substantial quantities of the algorithmic stablecoin.
During a recent deposition, Kanav Kariya, the President of Jump Crypto, opted to assert the fifth amendment, refusing to respond to queries regarding the arrangement. Excerpts from the deposition, shared by Terra researcher FatMan, disclosed the SEC's active investigation into the matter.
Previous reports from February identified Jump as the undisclosed trading firm cited in the SEC's indictment against Terraform Labs and Do Kwon. The purported "market-making" agreement allowed Jump to generate over $1 billion in profits by acquiring deeply discounted LUNA (now LUNC) tokens to support UST's value. Jump allegedly purchased LUNA for as low as $0.40 at a time when its market value exceeded $90 per token.
Jump Crypto held a significant role in the Terra ecosystem, participating in governance proposals and investing in the cross-chain bridge. Kanav Kariya also served on the board of Luna Foundation Guard (LFG), overseeing Terra's reserves. The SEC's investigation raises concerns about potential misconduct within the Terra ecosystem and broader implications for Jump Crypto's activities in the cryptocurrency market.
Let us know what you loved about this article, what could be improved, or share any other feedback by filling out this short form.
This article contains links to third-party websites or other content for information purposes only (“Third-Party Sites”). The Third-Party Sites are not under the control of CoinMarketCap, and CoinMarketCap is not responsible for the content of any Third-Party Site, including without limitation any link contained in a Third-Party Site, or any changes or updates to a Third-Party Site. CoinMarketCap is providing these links to you only as a convenience, and the inclusion of any link does not imply endorsement, approval or recommendation by CoinMarketCap of the site or any association with its operators.
This article is intended to be used and must be used for informational purposes only. It is important to do your own research and analysis before making any material decisions related to any of the products or services described. This article is not intended as, and shall not be construed as, financial advice.
The views and opinions expressed in this article are the author’s [company’s] own and do not necessarily reflect those of CoinMarketCap.
