Jump Trading Revealed To Be The Firm That Made $1.28 Billion From Terra Ecosystem

Following a case between the U.S. SEC and Terraform labs, crypto firm Jump Trading has been identified as the company that made $1.28 billion from the Terra ecosystem.

• What: Annonymous persons have identified Chicago-based crypto firm Jump Trading as the unnamed partner that made $1.28 billion from the Terra ecosystem
• Why: It amassed huge profits selling Luna tokens that had been purchased at discounted rates but only used $62 million to help save Terra’s UST
• What next: Court’s determination still pending

The U.S. Securities and Exchange Commission (SEC) sued Do Kwon and Terraform Labs last week over the TerraUSD (UST) collapse. They charged the Singapore-based firm and its CEO with “orchestrating a multi-billion-dollar crypto asset securities fraud involving an algorithmic stablecoin and other crypto asset securities.” In the complaint, the U.S. regulator mentioned an unnamed trading partner that collected $1.28 million in profits before the stablecoin’s implosion. People close to the matter have since revealed that the unnamed partner was Chicago-based crypto firm Jump Trading.

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Jump Trading was the firm that made $1.28 billion from the Terra ecosystem, according to sources familiar with the matter. pic.twitter.com/BdRuvBCcsU

— Unchained (@Unchained_pod) February 20, 2023

In the filing, the SEC refers to an unnamed trading company that made an exclusive market-making deal with Terraform Labs. The company, now identified as Jump Crypto, bought heavily discounted LUNA tokens (UST stablecoin’s primary support). From the report, although Jump Trading made $1.28 billion selling off the discounted tokens, it only used $62 million to help maintain the UST price around the $1 mark in May 2021.

Jump Trading president Kanav Kariya was a board member of the Luna Foundation Guard, overseeing Terra’s multi-billion-dollar bitcoin (BTC) reserve treasury launched in May 2022 in an unsuccessful attempt at restoring the UST peg. Moreover, the trading firm’s parent company is neck-deep in conventional finance, making it an empire in the digital asset sector. The firm played a crucial role in the Terra ecosystem. Besides frequently presenting governance proposals, it was also heavily invested in the Terra project. Jump Trading participated in the initial creation of a terra cross-chain bridge alongside co-leading a $1 billion fundraiser to set up the Luna Foundation Guard.

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