Jump Trading, a subsidiary of Jump Trading, has been named in the SEC's lawsuit against Terraform Labs and Do Kwon on 12th of May 2021. Tai Mo Shan, a Cayman Islands-exempted company linked to Jump Trading, is mentioned in the documents filed by SEC. According to Harneys, Cayman Islands-exempted company is a company that operates mainly outside the Cayman Islands and this is an entity with a Chicago, Illinois, address.

The disclosure also showed a contract between Tai Mo Shan and Terra signed by Matthew Hinerfield of Jump Trading and Do Kwon in 2019. Under the contract, Terra agreed to pay Jump Trading 30 million Luna in that year with a 2% annualized interest fee payable in Luna. In July 2021, the contract was amended for Jump Trading to deliver over 61 million Luna.

The SEC's document also showed that in 2020, Do Kwon sent an email to Terra's investors informing them of an arrangement it entered into with Jump Trading. Jump Trading received a loan of 30 million Luna which was used to make improvements to the cryptocurrency's liquidity and on-chain governance, an activity that generated a net profit of 1 billion dollars. Even with that, Jump Trading and Tai Mo Shan have not been associated with any wrongdoings related to the TerraUSD case.

That said, Jump Trading is now facing a class action lawsuit of supporting a Terra fraud scheme and manipulating Terra in a way that earned $1.3 billion for the company. Meanwhile, TerraUSD depegged from the US dollar last summer which resulted in a $40 billion loss from investor wallets, leading to SEC charging Terraform and Do Kwon for aggressively marketing their cryptocurrencies in different platforms and social media. The whole situation has now leads to extradition requests against Do Kwon from US and South Korea authorities and he is awaiting trial in Montenegro on falsified documents charges. There was no response from Jump upon requests for comments.



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