Jump Trading Earns $1 Billion Trading TerraUSD (UST)
Jump Trading, a market maker, reportedly earned approximately $1 billion after entering into an agreement with Terraform Labs (TFL) to support the TerraUSD (UST) exchange rate, according to SEC documents obtained by The Wall Street Journal.
This follows the accusations from the Department of Justice against TFL and its founder, Do Kwon, of fraud.
Employees of Jump Crypto, a subsidiary of Jump Trading, were also reportedly interrogated as part of the investigation into the collapse of the Terra ecosystem.
The Commission’s lawsuit states that UST fell to $0.9 before Kwon pointed to the bounce as an example of the “automatic self-healing” of an algostablecoin, in an effort to increase investor confidence in the token’s stability.
Kwon did not disclose details of the Jump deal, which purchased TerraUSD for tens of millions of dollars to bring its price back to $1, according to the SEC.
Documents officially confirm information from some media and social media rumors that Jump Trading was the unnamed firm in the lawsuit.