2023-02-20
After UST depegged on May 7, 2022, Jump Crypto made $1.28 billion profit from dumping Luna tokens. In the Complaint filing that SEC sent to
the US District Court for the Southern District of New York. SEC is accusing Do Kwon
for manipulating the price of Luna to keep UST pegged. It named Jump Trading as
a third-party company involved in the price manipulation of Luna and UST. SEC
did not mention that it will charge against Jump Trading or not, it only mention that Jump Trading involved with the collapse of UST.
SEC said that Jump Crypto trading firm
made $1.28 billion profit from selling Luna. The story is that Jump Crypto
bought $1 billion worth of Luna tokens from Luna Foundation Guard controlled by
Do Kwon for just $0.4 per token when Luna price at that time were selling at $53.42 per token and
the market cap of Luna was $20.7 billion. Do Kwon wanted Jump Crypto to become
a market maker to keep UST from depegging. Jump Crypto spent only $62 million
to help UST maintain 1:1 peg. It sold Luna and made $1.28 billion profit.
