TechFlow News — On December 21, according to an official announcement, the U.S. Securities and Exchange Commission (SEC) has imposed a $123 million penalty on Tai Mo Shan Limited, a wholly-owned subsidiary of Jump Trading, for misleading investors during the Terra USD (UST) de-pegging event. The SEC stated that in May 2021, when UST deviated from its $1 peg, Tai Mo Shan entered into an agreement with Terraform Labs to purchase UST in exchange for discounted LUNA tokens.
The investigation revealed that Tai Mo Shan purchased over $20 million worth of UST at the time in an attempt to restore its price stability. The SEC contends this conduct misled the market into believing Terra’s algorithmic mechanism was functioning as intended. Additionally, the SEC charged Tai Mo Shan with acting as an unregistered dealer in LUNA tokens from January 2021 to May 2022, distributing what the agency considers securities on U.S. trading platforms without proper registration.
