The recent reports stated that the crypto trading company Jump Trading acquired an amount of $1.2 billion, by bolstering Do Kwon’s collapsed crypto exchange Terraform Labs. The crypto researcher FatMan shared a Twitter thread regarding the SEC’s announcement on the involvement of Jump Trading in the matter.
FatMan commented that “Jump made over $1b profits through their dealings with TFL and Do Kwon”:
The SEC has now directly confirmed that Jump secretly bailed out the UST project, propping up the peg and prolonging the Ponzi without any public disclosure whatsoever. Jump made over $1b in profits through their dealings with TFL and Do Kwon. https://t.co/SGQwFBppoe— FatMan (@FatManTerra) May 16, 2023
According to the statement released by the Securities and Exchange Commission (SEC), Jump Trading purchased more than 62 million stablecoins which helped Terraform Labs to regain the asset’s price back to $1 after it lost its peg in May 20121. Later, Kwon manipulated that the recovery of the asset is demonstrative of the stablecoin algorithm’s “self-healing” abilities. The CEO also added that UST has the ability to restore and maintain its dollar peg through a code-enabled balancing act with its companion Luna.
The previous week, an investor filed a lawsuit against Jump Trading and CEO Kanav Kariya, alleging the platform’s involvement in manipulating TerraUSD’s price. It was revealed that since May 9, 2021, Jump Trading has bought a whopping amount of UST tokens, with the intention to fabricate its value.
Initially, the SEC didn’t reveal the name of the crypto firm involved in the manipulation of UST’s price but simply noted the intervention of a “third party”. Later, a crypto platform hinted that the “unidentified” third party is supposedly Jump Trading.
As per the revelations, Terraform Labs received multimillion-dollar support from Jump Trading when the former was at the edge of ruin. In return, Jump Trading entered into an agreement with Terraform Labs, in which the latter promised to let the former buy Luna for 30, 40, and 50 cents over a period of three years.
FatMan provided evidence for the fact that he already knew the relationship between the two crypto firms, referring to one of his previous tweets, in which he revealed that a Jump Crypto insider has given him information regarding the matter.