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- 1 Taewoo Kim claims in a lawsuit that Jump booked a profit of billions of dollars by selling LUNA at discounted rates.
- 2 The Chicago-based trading company acquired over 61 million algorithmic stablecoins in five days.
TerraUSD’s unprecedented collapse has broken the beliefs of millions of investors who have invested their life savings in algorithm-based stablecoin developed by Terraform Labs. Recently Taewoo Kim, a resident of New Jersey, has lodged a Lawsuit against Jump Trading for manipulating the prices of UST.
The case registered in Illinois district court alleges that the Chicago-based proprietary trading firm primarily focused on algorithmic and high-frequency trading strategy has a direct connection with the failed stablecoin co-founded by Do Kwon and Daniel Shin.
Supporting document filed in the court claims that Jump Trading partnered with Do Kwon and his firm to manipulate the prices of stablecoin and drive them near about $1. The document importantly notes that the Trading company was one of the early-stage partners and a financial supporter of UST native firm Terraform Labs.
Taewoo informed the court that Jump acquired over 61 million UST stablecoins in just five days between May 23 and May 27, 2021. The TerraUSD token was purchased using dozens of crypto exchanges to avoid the identification of manipulative moves.
The lawsuit collectively accuses Jump and its president Kanav Kariya of breaching Commodity Futures Trading Commission and Commodity Exchange Act regulations. It is also said that Jump has booked billions of dollars in massive profit by selling LUNA tokens at discounted rates acquired using modified agreements.
Post Effects of TerraUSD Failure
After the crash, financial authorities on a global level showed their active participation and started working to identify the loophole which led LUNA towards the destructive path. Dozens of nations, including South Korea, Singapore, and the United States, searched for Do Kwon for over 24 months. Most recently, Interpol informed that he was arrested at Podgorica airport.
The disastrous collapse of TerraUSD has stirred the entire crypto market. According to reliable data sources, over $60 billion of investors, customers, and giant holders’ funds were lost after this demise.
The police officers of Montenegro have detained the co-founder and Han Chang-Joon of Terraform Labs. Both of them were trying to flee the nation to some new place. Do faced multiple fraud and market manipulation charges in Singapore, the US, and his native South Korea.
Earlier on April 15, 2023, TheCoinRepublic reported that Do is accused of sending 9 Billion Won to a legal firm based in Korea. The funds’ transfer to the bank account of Kim & Chang’s firm was initiated just a few days after LUNA’s collapse. It is believed that the co-founder was already aware of the coming destruction of his self-developed stablecoin.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
