Jump Trading is allegedly the unnamed accomplice that supported the TerraUSD (UST) stablecoin, based on a story from The Block.

The us Securities and Commerce Commission (SEC) filed a lawsuit against Terraform Labs and its founder Plan Kwon final week, alleging the parties had been responsible for a “multi-billion greenback crypto asset securities fraud.”

In its complaint, the SEC alleged that Terra had loaned 30 million LUNA to a “US Trading Agency” in 2019 – something Kwon outlined to a minute team of merchants as a transaction to make stronger liquidity of the token. In 2020, the purchasing and selling company allegedly started actively promoting LUNA into the market and made roughly $1.28 billion in the system.

Of us with files of these trades told The Block that proprietary purchasing and selling company Jump Trading was as soon as the unidentified purchasing and selling company that the SEC referred to in the lawsuit. On the time of writing, the SEC had no longer accused Jump of any wrongdoing.

A spokesperson from Jump reportedly declined to comment on the accusations. The company was as soon as identified to were an full of life participant in the Terra ecosystem, having co-led a $1 billion funding in the Luna Foundation Guard (LFG) along with now-defunct hedge fund Three Arrows Capital final year.

Under modified phrases of its mortgage settlement with Terra to attend as its market maker, Jump was as soon as in an area to fetch LUNA for as little as $0.40 per token, even when LUNA was as soon as purchasing and selling at over $90 in the start market.

In step with the SEC, when UST in brief lost its peg in Might perchance perhaps well well also 2021, it was as soon as the unnamed third celebration (on this case, Jump Trading) that in the break helped the asset recover by purchasing for up Terra’s tokens. The reality that the company stepped in to stop a market selloff at the time was as soon as allegedly what drove the modified phrases to originate LUNA at such discounted prices.

“Particularly, Terraform and Kwon emphasized the purported effectiveness of the algorithm underlying UST in affirming UST pegged to the greenback – misleadingly omitting the prison explanation for UST’s re-peg: the deliberate intervention by the U.S. Trading Agency to restore the peg,” said the SEC.