A federal judge accepts materials from Jump Crypto Holdings in SEC case against Terraform Labs
A federal judge has accepted materials from Jump Crypto Holdings in discovery for the United States Securities and Exchange Commission (SEC) case against Terraform Labs. The judge approved the confidential treatment of certain materials produced by Jump Crypto Holdings, which is under scrutiny from the SEC for its alleged involvement in the events leading to the depegging of TerraUSD (UST) and the downfall of Terra.
Court retains discretion over confidential materials
The court retains discretion to make public any confidential materials in connection with future motion practice or trial. If such disclosure is contemplated, the court will provide prior notice to counsel for Jump so that counsel may be heard on any objections.
Jump Crypto’s role in Terra’s collapse
Before Terra’s collapse, Jump Crypto played a significant role in the firm’s ecosystem, participating in funding rounds supposedly to establish a UST reserve. Investors filed a lawsuit against Jump Trading in May, alleging price manipulation of UST to gain profits.
Terraform Labs and co-founder face fraud charges
In February, the SEC charged Terraform Labs and co-founder Do Kwon for allegedly orchestrating a multi-billion dollar crypto asset securities fraud. Both the SEC and Kwon and Terraform Labs filed motions for summary judgment in October.
Kwon’s arrest and extradition
Authorities in Montenegro arrested Kwon in June for using falsified travel documents, sentencing him to four months in prison. A Montenegrin court approved Kwon’s extradition subject to approval by the minister of justice, meaning he may be sent to either the United States or South Korea to face charges.
Hot Take: Federal judge approves use of Jump Crypto Holdings materials in SEC case against Terraform Labs
A federal judge has allowed the United States Securities and Exchange Commission (SEC) to use materials from Jump Crypto Holdings in its case against Terraform Labs. Jump Crypto Holdings, the crypto arm of Jump Trading, is under scrutiny for its alleged involvement in the events that led to the depegging of TerraUSD (UST) and the downfall of Terra. The court has the discretion to make confidential materials public if necessary for future motions or trial. Before Terra’s collapse, Jump Crypto played a significant role in the firm’s ecosystem, participating in funding rounds related to UST reserves. The SEC charged Terraform Labs and its co-founder Do Kwon with securities fraud, and both parties have filed motions for summary judgment. Kwon was arrested in Montenegro for using falsified travel documents and may be extradited to face charges.
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