Jump Trading encryption department Tai Mo Shan agreed to pay $1.23 billion to settle charges by U.S. regulators

Jump Trading's encryption department Tai Mo Shan has agreed to pay $123 million to settle charges with U.S. regulators. Jump Trading's cryptocurrency division Tai Mo Shan Ltd. has agreed to pay $123 million to settle allegations by U.S. regulators that it misled investors about the stability of the TerraUSD algorithmic stablecoin. The US Securities and Exchange Commission said in a statement on Friday that the company also resolved allegations that it violated securities laws when underwriting TerraUSD's sister token, Luna. Tai Mo Shan did not admit or deny the allegations as part of the settlement. TerraUSD was supposed to achieve a constant value of $1 through complex algorithms involving Luna and trader incentives. The SEC said that in reality, Tai Mo Shan's significant purchases helped stabilize the currency, deceiving the market into believing the algorithmic mechanism was at work.

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