A U.S. court has given the green light for Jump Crypto to whisper sweet nothings (read: confidential info) to the court, away from our prying eyes. 👀
Let’s rewind a bit. Terraform Labs and its ex-CEO, Do Kwon, are in hot water with the SEC. The charge sheet? Allegedly peddling unregistered securities and dabbling in fraud, raking in billions in the process. Their lol-stablecoin, TerraUSD ($UST) crashed and burned in May 2022, now worth a measly $0.01.
Now, enter Judge Jed S. Rakoff, who’s playing it cool by saying he might spill the beans on those confidential filings later. If that happens, Jump Crypto’s legal eagles get a chance to squawk their objections. 🐔
So, what’s Jump Crypto’s role in this crypto soap opera? They’re not defendants, but the SEC is pointing fingers at them for the UST stablecoin’s nosedive. As alleged by the SEC, the plot goes something like this:
Back in May 2021, when UST started to wobble off its dollar peg, Terraform Labs supposedly cooked up a scheme. What was the scheme? Getting Jump Crypto to buy heaps of UST to prop up its price. Fast forward to May 2022, and no Jump Crypto cavalry can save the day, leading to UST’s downfall. ⤵️