• The US Securities and Exchange Commission (SEC) has filed a wrongdoing charge against an unnamed US trading firm for making over $1.28 billion off of Terra’s LUNA tokens.
• Sources say the unnamed US-based trading firm is Jump Crypto, a subsidiary of Jump Trading.
• The SEC alleges that Terraform Labs and its CEO Do Kwon misrepresented the human effort as a software algorithm when they entered a deal with Jump Crypto to help re-peg TerraUSD in 2021.

Jump is the ‚US trading firm‘ That Made $1.28B Off LUNA: Report

SEC Filed Wrongdoing Charge Against Trading Firm

The US Securities and Exchange Commission (SEC) has filed a wrongdoing charge against an unidentified US trading firm for making over $1.28 billion off of Terra’s LUNA tokens. Sources say that this company is Jump Crypto, a subsidiary of Jump Trading based out of Chicago.

Terra Misrepresented Human Effort as Software Algorithm

The SEC alleges that Terraform Labs and its CEO Do Kwon misrepresented the human effort as a software algorithm when they entered a deal with Jump Crypto to help re-peg TerraUSD in 2021. The company was able to buy Luna tokens at massive discounts leading to the huge profit, though the SEC has now filed charges against them for such activity.

Jump Helped Re-Peg TerraUSD In 2021

When the SEC sued Terraform Labs and its CEO Do Kwon, it pointed to an American trading firm as having realized massive profits from deals with Terra (LUNA). This firm is said to be Jump Crypto who provided market making services for Luna since 2019 and helped re-peg TerraUSD in 2021 by buying Luna tokens at discounted prices.

Terra Allowed Firm To Buy Tokens For As Low As 40 Cents

Tera allowed this firm to buy Luna tokens for as low as 40 cents at a time when these tokens traded at $90 across the secondary market, resulting in massive profits for them with no repercussions until now when the SEC has brought charges against them for their involvement in this matter.

Conclusion

Jump Crypto was able to make huge profits from their involvement with Luna due to their agreement with Terraform Labs which allowed them access to buy these tokens at discounted prices without any repercussions until now.