PANews reported on December 21 that according to DL News, Tai Mo Shan Ltd., a subsidiary of Jump Trading, will pay a settlement of $123 million to the U.S. Securities and Exchange Commission to settle allegations that investors were misled during the TerraUSD crash. It is reported that the company made a large number of purchases during the TerraUSD crash to support the stablecoin's peg to $1, suspected of market fraud.

The SEC reportedly accused the company of conducting $20 million worth of transactions that led investors to misjudge the stability of TerraUSD. The regulator also highlighted the company's role in underwriting TerraUSD's related token Luna, saying it was suspected of being issued as an unregistered security. The settlement stems from Jump Crypto's involvement in Terraform Labs' operations, from which the company allegedly made more than $1 billion.