Jump Crypto Files Documents Confidentially in Terraform Labs Lawsuit

Ad Disclosure
Ad Disclosure

We believe in full transparency with our readers. Some of our content includes affiliate links, and we may earn a commission through these partnerships. However, this potential compensation never influences our analysis, opinions, or reviews. Our editorial content is created independently of our marketing partnerships, and our ratings are based solely on our established evaluation criteria. Read More
Last updated:
Ad Disclosure
Ad Disclosure

We believe in full transparency with our readers. Some of our content includes affiliate links, and we may earn a commission through these partnerships. However, this potential compensation never influences our analysis, opinions, or reviews. Our editorial content is created independently of our marketing partnerships, and our ratings are based solely on our established evaluation criteria. Read More
Author
Brian Yue
Author Categories
About Author

Last updated:
Why Trust Cryptonews
Cryptonews has covered the cryptocurrency industry topics since 2017, aiming to provide informative insights to our readers. Our journalists and analysts have extensive experience in market analysis and blockchain technologies. We strive to maintain high editorial standards, focusing on factual accuracy and balanced reporting across all areas - from cryptocurrencies and blockchain projects to industry events, products, and technological developments. Our ongoing presence in the industry reflects our commitment to delivering relevant information in the evolving world of digital assets. Read more about Cryptonews
Ad DisclosureWe believe in full transparency with our readers. Some of our content includes affiliate links, and we may earn a commission through these partnerships. Read more
In a Nov. 28 filing in the U.S. District Court for the Southern District of New York, Judge Jed Rakoff sanctioned the confidential treatment of specific materials generated by Jump Crypto Holdings, the cryptocurrency division of Jump Trading.
Source: Pixabay

A federal judge has accepted confidential materials from Jump Crypto Holdings in discovery as part of the Securities and Exchange Commission’s lawsuit against Terraform Labs.

In a Nov. 28 filing in the U.S. District Court for the Southern District of New York, Judge Jed Rakoff sanctioned the confidential treatment of specific materials generated by Jump Crypto Holdings, the cryptocurrency division of Jump Trading.

“The Court retains discretion to make public any confidential materials in connection with future motion practice or trial,” the filing read. “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 Trading had reportedly come under investigation by the SEC for its purported role in the events that triggered the depegging of TerraUSD (UST) and the subsequent decline of the Terra ecosystem, a major catalyst for the crypto market downturn of 2022.

Prior to the collapse of Terraform Labs, Jump Crypto had a notable role in the company’s ecosystem, engaging in funding rounds with the goal of creating a reserve for Terra’s stablecoin, UST.

However, in May, investors filed a lawsuit against Jump Trading, accusing the firm and its CEO, Kanav Kariya, of manipulating the price of UST to secure approximately $1.3 billion in profits.

According to the SEC, Terraform Labs loaned Jump 30 million Terra tokens in November 2019 and an additional 65 million LUNA in September 2020.

Terra claimed that the “loans” were intended to enhance liquidity; however, the SEC asserted that the trading firm was consistently selling LUNA into the market.

In February this year, the SEC filed charges against Terraform Labs and its co-founder Do Kwon, alleging their involvement in a multi-billion dollar crypto asset securities fraud. The case is still ongoing, with both the SEC and Terraform Labs submitting motions for summary judgment in October. Jury selection is scheduled to begin next year on January 29 in New York, should the case proceed to trial.

Montenegro authorities arrested Kwon in June for using forged travel documents, leading to a four-month prison sentence. On November 24, a Montenegrin court granted approval for Kwon’s extradition, pending the Minister of Justice’s approval. He could be extradited to either the United States or South Korea to face the charges.

In addition to the SEC’s civil suit, Do Kwon is also facing criminal charges in the United States regarding the collapse of the Terraform ecosystem.

 

More Articles

Altcoin News
Brazil’s B3 Stock Exchange to Launch Bitcoin Options and Futures for ETH and SOL
Ruholamin Haqshanas
Ruholamin Haqshanas
2025-02-10 12:05:00
Bitcoin News
University of Austin Launches $5M Bitcoin Investment Fund for Endowment
Hassan Shittu
Hassan Shittu
2025-02-10 11:06:46
Crypto News in numbers
editors
Authors List + 66 More
2M+
Active Monthly Users Around the World
250+
Guides and Reviews Articles
8
Years on the Market
70
International Team Authors