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Edited by Isha000 at 25-12-2023 12:45 PM
According to documents filed in a New York court on Wednesday, the legal lawsuit against Do Kwon and Terraform Labs may hinge on the actions of market maker Jump Trading.
In May 2022, the collapse of UST had a significant impact on the cryptocurrency market, and Do Kwon was subsequently sued by the U.S. Securities and Exchange Commission (SEC) for misleading investors.
The latest documents in the case reveal a focus on Jump Trading, which appears to have made a profit of $1.28 billion during the UST collapse.
The actions of Jump Trading could be crucial, as the UST stablecoin briefly decoupled from the U.S. dollar in the past. While Kwon told investors that the token maintained its value of $1 due to its automated algorithms, SEC experts suggest that this was actually due to Jump's market intervention at the behest of Terraform.
In a letter to the Singapore Supreme Court from Kwon's legal team, it is stated: "The defendants deny these allegations and claim that Jump was not the cause of the UST price recovery at that time." The letter also adds: "The decoupling in May 2022 was the result of third-party 'short' trading conducted intentionally, causing it to deviate from price anchoring."
Do Kwon's defense team also argues that the SEC lacks jurisdiction because the assets involved are currency, not securities. |
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Post time 24-10-2023 09:10:29