Jump Trading made a billion dollars from supporting TerraUSD
In May 2021, U.S. 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. This text is from project cryptodefix. 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.
No comments yet