{"id":195030,"date":"2023-10-19T15:40:04","date_gmt":"2023-10-19T15:40:04","guid":{"rendered":"https:\/\/tokenstalk.info\/?p=195030"},"modified":"2023-10-19T15:40:04","modified_gmt":"2023-10-19T15:40:04","slug":"terra-land-in-chaos-jump-trading-in-the-spotlight-as-sec-intensifies-legal-action-against-do-kwon-coinpedia-fintech-news","status":"publish","type":"post","link":"https:\/\/tokenstalk.info\/crypto\/terra-land-in-chaos-jump-trading-in-the-spotlight-as-sec-intensifies-legal-action-against-do-kwon-coinpedia-fintech-news\/","title":{"rendered":"Terra Land in Chaos: Jump Trading in the Spotlight as SEC Intensifies Legal Action Against Do Kwon &#8211; Coinpedia Fintech News"},"content":{"rendered":"<p>In every court hearing, a new layer is presented. Right now, the Terra land is full of chaos as the firm copes with misleading chat history, forged document claims, and whatnot! The latest is Jump Trading. Do Kwon, the founder of Terraform Labs, is facing legal action over allegations of misleading investors regarding the terraUSD stablecoin, whose collapse in 2022 had significant repercussions in the crypto sphere.\u00a0<\/p>\n<p>The case is now spotlighting market maker Jump Trading, which is believed to have profited substantially as the ecosystem crumbled. The collapse of the terraUSD stablecoin in May 2022 had a profound impact on the crypto market, signaling the onset of crypto winter. Kwon is facing a lawsuit from the U.S. Securities and Exchange Commission (SEC) for allegedly providing false information to investors.<\/p>\n<h2><strong>Do Kwon\u2019s Mess-up Story of Jump Trading&nbsp;<\/strong><\/h2>\n<p>Recent court documents highlight the critical role of Jump Trading in the case. But what is Jump trading? Shorting is a bet on price decline. An investor borrows and sells, with a target to repurchase at a lower price, profiting from the difference.<\/p>\n<p>That\u2019s where the SEC intervened; the case hinges on an incident from the previous year, where UST briefly lost its peg to the dollar. While Kwon assured investors that the coin\u2019s value remained stable thanks to its automated algorithm, the SEC contends that it was, in fact, Jump Trading\u2019s intervention at Terraform\u2019s request that maintained the peg. These conflicting narratives have become a central point of contention in the legal proceedings.<\/p>\n<p>Kwon\u2019s defense maintains that Jump Trading\u2019s activities did not directly cause the peg restoration in May 2021. They argue that the de-pegging in May 2022 resulted from a deliberate attempt by third parties to short UST, prompting a public intervention to counteract the short.<\/p>\n<p>Additionally, Elliptic\u2019s analysis shows TerraUSD and Luna\u2019s investors lost $42 billion, causing a widespread crypto crash affecting Bitcoin, Ethereum, and Tether.<\/p>\n<h2><strong>Jump Trading\u2019s Previous Setback with FTX<\/strong><\/h2>\n<p>The defense team also argues that the SEC lacks jurisdiction, as the assets are currencies, not securities. This legal gray area mirrors ongoing cases involving exchanges like Binance and Coinbase.<\/p>\n<p>Kwon, arrested for possessing false ID documents in March, is currently detained in Montenegro. A recent biography of Sam Bankman-Fried indicated that Jump Trading incurred nearly $300 million in losses when FTX, Bankman-Fried\u2019s exchange, faced a significant setback in November 2022.\u00a0<\/p>\n<p>Source: <a href=\"https:\/\/coinpedia.org\/news\/https:\/\/coinpedia.org\/news\/terra-land-in-chaos-jump-trading-in-the-spotlight-as-sec-intensifies-legal-action-against-do-kwon\/\" target=\"_blank\" rel=\"noopener\">Read Full Article<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In every court hearing, a new layer is presented. Right now, the Terra land is&#8230;<\/p>\n","protected":false},"author":4,"featured_media":195029,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.8 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Terra Land in Chaos: Jump Trading in the Spotlight as SEC Intensifies Legal Action Against Do Kwon - Coinpedia Fintech News - Tokens Talk<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/tokenstalk.info\/crypto\/terra-land-in-chaos-jump-trading-in-the-spotlight-as-sec-intensifies-legal-action-against-do-kwon-coinpedia-fintech-news\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Terra Land in Chaos: Jump Trading in the Spotlight as SEC Intensifies Legal Action Against Do Kwon - Coinpedia Fintech News - Tokens Talk\" \/>\n<meta property=\"og:description\" content=\"In every court hearing, a new layer is presented. 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