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SEC fines Jump Crypto $123 million over TerraUSD scandal

SEC fines Jump Crypto $123 million over TerraUSD scandal

HappyCoinNewsHappyCoinNews2024/12/21 21:33
By:HappyCoinNews

The U.S. Securities and Exchange Commission (SEC) has fined Tai Mo Shan Limited, a subsidiary of Jump Crypto Holdings, $123 million. The regulator accused the firm of misleading its investors about the sustainability of the Terra USD stablecoin issued by Terraform Labs PTE Ltd.

This case reminds us that we have seen too many significant investor losses due to fraud in the cryptocurrency markets, said SEC Chairman Gary Gensler.

He noted that Tai Mo Shan's illegal activities had affected the entire cryptocurrency market and led to serious losses for investors.

The commission found that the company's actions, which made large purchases of Terra USD when the network was overloaded, helped stabilize the asset and created the impression that the so-called "algorithmic mechanism of the stablecoin" was working successfully.

For example, Tai Mo Shan bought several million stablecoins in May 2021, when the Terra USD rate fell below $1. According to the SEC, the company earned about $1 billion on such transactions.

Tai Mo Shan representatives agreed with the regulator's decision, and now the company will pay more than $73,45 million in compensation, $12,9 in interest on the claim, and another $36,7 million in civil penalties.

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