The Securities and Exchange Commission (SEC) has charged Tai Mo Shan Limited with misleading investors about the stability of Terra USD (UST), a purported “algorithmic stablecoin” issued by Terraform Labs PTE Ltd., when UST dropped from its purportedly fixed exchange rate of 1 UST to $1, known as a peg.
The Commission further charged Tai Mo Shan with offering and selling securities in unregistered transactions by acting as a statutory underwriter with respect to certain of its offers and sales of LUNA, a crypto asset issued by Terraform and offered and sold as a security. Tai Mo Shan is a wholly-owned subsidiary of Jump Crypto Holdings LLC.
Terraform and its founder, Do Kwon, were found liable for fraud and unregistered securities offerings by a federal district court in April 2024 and agreed to…
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