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The appeal, filed in the Illinois District Court, details the possible involvement of Jump Trading to Terra Labs in manipulating the price of the algorithmic stablecoin TerraUSD (UST). According to the court documents on January 9, the company gave millions of UST tokens in 2021, in order to manipulate them to reach 1 dollar.
Pozivach Taeu Kim calls Jump and yogo General Director of Kanav Kariyu in violation of the Law on Commodity Exchanges, as well as the rules of the Commodity Futures Trading Commission (CFTC), as well as the wrongful protection of foreign rights.
By invitation, Jump Trading became the first partner and main financial sponsor of Terraform Labs. Between the fall of the leaves of 2019 and spring of 2020, Jump has acquired Terraform and its subsidiaries “to deposit tens of millions of LUNA tokens” with Terra and “give services for the formation of a market for transactions with LUNA, UST and AUST.”
In exchange for this, please give Jump Trading “the ability to get LUNA tokens with a significant reduction, so that later you can resell them to the market to increase Jump’s wet supply.”
According to the document, at the beginning of 2021, the fate is exactly one day before the collapse of the Terra ecosystem — the UST stablecoin algorithm failed to save the pegging of 1 dollar, which made Terraform and its CEO Do Kwon coordinate the auction in order to raise the price of the token:
“In order to publicly recognize the impossibility of the TFL algorithm, the linked price of the UST was advertised (which was fundamental for the adopted market price of UST and aUST), TFL and Kwon were secretly planned with the help of Jump to manipulate the markets with their prices for UST and aUST, to ensure coordinated trading, schob pіdrimati UST before binding in 1 dollar.
The scheme was rebuffed to transfer Jump money over 62 million UST tokens approximately from 23 to 27 May 2021, which led to a piece increase in the price of UST to $ 1, which also increased the price of AUST.
In order to incentivize Jump’s winemaking for its ability to manipulate the markets, Terra and Kwon “feel free to change the front side and to transfer Jump over 61.4 million tokens in LUNA with a reduction of 99% to the streaming market. Jump later resold LUNA’s digital tokens to the market for over $1.28 billion,” according to the court’s statement.
Cointelegraph turned back to Jump Trading whenever I call the ship, but without taking away the negative opinion.
On June 13, Bloomberg reported that the U.S. Attorney’s Office is reviewing a Telegram chat discussion involving Jump Trading, Alameda Research, and Jane Street Group to potentially help the TerraUSD stablecoin.
The US Department of Justice is also investigating the collapse of stablecoins, which caused $40 billion in the Terra ecosystem last May. The rest of the week, two agencies of the department – the Federal Bureau of Investigation and the Attorney’s Office of the Pivdenny District of New York – fed a lot of Terraform Labs specialists.
Kwon was arrested in a birch in Chornogoriy for no number of false documents. The government of Pivdennoy Korea and the USA are seeking extradition. At the same time, the wine was rebuked under home arrest after the fact that on May 12, they released the outpost of 400,000 euros.
