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Jump Trading Made About $1 Billion in Deals with Terraform Labs

Jump Trading Made About $1 Billion in Deals with Terraform Labs

2023/05/16 03:12
Crypto market maker Jump Trading made about $1 billion in profits from trades with Terraform Labs after entering into a secret deal a year before the UST collapse , according to a Securities and Exchange Commission (SEC ) court filing , the Wall Street Journal reported . In May 2021 , the UST fell below $1 , dipping as low as nearly 90 cents before rebounding back to $1 , but the SEC says Jump Trading bought tens of millions of dollars worth of UST to push its price back to $1 . Do Kwon 's email shows that "Jump will increase liquidity in Terra and LUNA and will receive a share of the UST at 30 cents , 40 cents and 50 cents for the next three years . Do Kwon 's email indicates that "Jump will increase liquidity in Terra and LUNA and will have the option to purchase LUNA at 30 cents , 40 cents and 50 cents over the next three years . In addition , the November 2019 agreement details the terms of a three -year deal , followed by an amendment to the Jump agreement starting in July 2021 , which requires Terraform Labs to commit to transfer 61 .5 million LUNAs to it each month . This follows a new class action lawsuit alleging that Jump Trading manipulated the price of the Terra algorithm 's stable coin , UST , resulting in a loss of at least $40 billion for investors who invested money in the underlying cryptocurrency .
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