Jump Crypto Whistleblower Assisted SEC Against Do Kwon
A whistleblower from Jump Trading Group provided assistance to the U.S. Securities and Exchange Commission (SEC) in their case against Terra creator Do Kwon, according to defense lawyer Douglas Henkin. The SEC alleges that Jump Crypto, a subsidiary of Jump Trading, had a secret agreement with Do Kwon to manipulate the price of the UST stablecoin in May 2021.
Anonymous whistleblowers, including one from Jump Trading Group, provided evidence to the SEC regarding fraud charges against Do Kwon. However, during his testimony, the whistleblower admitted to not having direct knowledge of the transactions in question.
The SEC accuses Do Kwon of misleading investors by claiming that Chai, his partner Daniel Shin’s firm, used the Terra blockchain for payment transactions when they actually used traditional payment technology.
Do Kwon’s defense attorneys argue that the whistleblower is biased and has been caught lying multiple times.
Do Kwon Extradition in Process
The Montenegro High Court has approved the extradition of Do Kwon to either South Korea or the United States. The decision on which country takes priority will be made by Montenegro’s Minister of Justice Andrej Milović.
Judge Rakoff has agreed to keep discovery documents from Jump Crypto sealed to protect the identity of the whistleblower. However, the court has reminded Terra and Do Kwon that they may choose to make public any confidential information submitted later in the trial or motion practice.
Hot Take: The Implications of the Whistleblower’s Testimony
The involvement of a whistleblower from Jump Trading Group in assisting the SEC’s case against Do Kwon raises questions about the credibility and reliability of their testimony. While whistleblowers can play a crucial role in exposing fraudulent activities, their lack of direct knowledge of the transactions in question may weaken the SEC’s case. It remains to be seen how this testimony will impact the outcome of the trial and whether it will have any long-term implications for Terra and its creator.
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