The terraform judge called a jump trade on the mat
Jump Trading will join cryptocurrency firm Terraform Labs (Terraform) and the US Securities and Exchange Commission (SEC) in a civil trial next year. A judge ruled that Terraform was used to sell unregistered securities, but Jump Trading may require a new understanding of how the company's market maker works.
The judge ruled that Terraform Labs did not engage in unregistered securities exchanges. Jump Trading's request to participate comes after an insider learned that Jump is aiming to expand TerraUSD in May 2021.
The judge needs clarity about the jump participation
If true, claimant Do Kwon will be asked how his algorithm keeps TerraUSD at $1. The judge said the SEC's current evidence in this case is “compelling but circumstantial.”
The court must also determine the credibility of the whistleblower.
Terraform Labs prohibits the sale of unregistered securities. The judge set January 29, 2023 as a new trial date.
In February, the SEC indicted Kwon and Terraform for allegedly siphoning $40 billion from the crypto market by offering unregistered securities. Kwon is serving time in Montenegro for passport fraud.
Read more: FTX Collapse Explained: How the Sam Bankman-Fried Empire Fell
What Does 2024 Hold for the SEC and Crypto?
Terraform's acquisition caps off a year of high-profile coverage of crypto products, companies and individuals. In the year In 2023, there were 501 enforcement actions alone, including several crypto cases.
The SEC sued PulseChain founder Richard Hurt, former FTX CEO Sam Bankman-Fried, and FTX executives. Following his criminal conviction in November, Bankman-Fried will face the SEC's wrath in March.
The SEC's lawsuit against Heart will carry over into the new year because the agency failed to notify Heart directly of the enforcement action.
Coinbase is in a heated battle with the SEC to clarify US crypto laws. The SEC may also need to defend appeals from Ripple Labs and make rulings on the approval of multiple venues' Bitcoin exchange-traded funds.
Read more: How to prepare for a Bitcoin ETF: A step-by-step approach
Do you have anything to say about Leap's involvement in the Terraform saga? Please write to us or join the conversation on our Telegram channel. You can also find us on TikTok, Facebook or X (Twitter).
Disclaimer
Adhering to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news report aims to provide accurate and up-to-date information. However, readers are advised to independently verify facts and consult with professionals before making any decisions based on this content. Please note that our terms and conditions, privacy policy and disclaimer have been updated.
