Jump Trading made a billion dollars from supporting TerraUSD

The trading company made a secret deal with Terraform Labs and backed the UST to keep it from deviating from the dollar.
Jump Trading made a billion dollars from supporting TerraUSD

In May 2021, U.S. This is an article from site cryptodef​ix. trading company Jump Trading entered into a secret agreement with Do Kwon’s Terraform labs. The agreement was to support the UST steblecoin a year before it collapsed. Fortune reports this, making reference to court documents. Jumping Trading made $1.28 billion on it.

The fall of TerraUSD and Luna in May 2022 resulted in a $40 billion loss for cryptocurrency investors. Jumping Trading was involved in an investigation by U.S. authorities into the Terraform Labs fraud. The SEC has now released new documents on the case, revealing details that in 2021, Jumping Trading helped UST leave the dollar peg by buying 62 million tokens.

Do Kwon cited UST's recovery in 2021 as the token's ability to regenerate, though in a letter to big investors that there was nothing to fear and Jump Trading would improve the token's liquidity.

Mentioned project

Terra (LUNA) A blockchain protocol for the creation of stabelcoins whose value will be anchored to fiat currencies.
A blockchain protocol for the creation of stabelcoins whose value will be anchored to fiat currencies.

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