A federal judge accepted materials from Jump Crypto Holdings in discovery for the U.S. Securities and Exchange Commission (SEC) case against Terraform Labs.
In a Nov. 28 filing in the United States District Court for the Southern District of New York, Judge Jed Rakoff approved the confidential treatment of certain materials produced by Jump Crypto Holdings, the crypto arm of Jump Trading. The signature was reportedly under SEC scrutiny for his alleged involvement in the events that led to the decoupling of TerraUSD (UST) and the fall of Terra, one of the major events that initiated the 2022 crypto market slowdown.
โ[T]โThe Court reserves the discretion to make public any confidential material in connection with the practice of future motions or trials,โ the document says. "If such disclosure is contemplated, the Court will notify Jump's attorneys in advance so that they can be heard on any objections."
Before Terra's collapse, Jump Crypto played an important role in the company's ecosystem, participating in funding rounds supposedly to establish a UST reserve. Investors filed a lawsuit against Jump Trading in May, alleging that the company and its CEO, Kanav Kariya, manipulated the price of UST to make approximately $1.3 billion in profits.
Related: Jump Trading Seeks to Move Terra Class Action Lawsuit to California
In February, the SEC Terraform Labs Loaded and co-foundermake kwon for allegedly "orchestrating a multimillion-dollar cryptoasset securities fraud." The case was still ongoing at press time, but both the SEC, Kwon and Terraform Labs filed motions for summary judgment in October.
Authorities in Montenegro arrested Kwon in June for using falsified travel documents and later sentenced the Terraform co-founder to four months in prison. On November 24, a Montenegrin court approved Kwon's extradition subject to the approval of the justice minister, meaning he may be sent to the United States or South Korea to face charges.
Magazine: Terra collapsed because he used arrogance as collateral - Knifefight
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