The SEC has charged Tai Mo Shan Limited, a subsidiary of Jump Crypto Holdings LLC, for misleading investors about the stability of Terra USD and selling unregistered securities. Tai Mo Shan claimed that Terra USD was a stablecoin pegged to $1, but it was later revealed that the stability was maintained through external interventions, not a magical algorithm. Furthermore, Tai Mo Shan acquired LUNA tokens and resold them on U.S. exchanges without registering them as securities, breaking securities laws. The company agreed to pay over $123 million in fines and is under a cease and desist order. This case highlights the fragility of the crypto ecosystem and the need for stricter regulations.



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