Jump Trading's cryptocurrency subsidiary has been fined $123 million for the TerraUSD scandal.

BlockBeats News, December 21, the U.S. Securities and Exchange Commission (SEC) announced that Jump Trading subsidiary Tai Mo Shan Ltd. will pay $1.23 billion to settle charges of misleading investors by stabilizing the TerraUSD during its collapse.

The company associated with Jump's cryptocurrency division made significant purchases during the TerraUSD collapse to support the failed stablecoin's peg to $1, deceiving the market.

The SEC accused Tai Mo Shan of negligence, noting its $20 million worth of trades that created a false impression of TerraUSD's stability.

The regulatory agency also highlighted the company's role in underwriting the sister token Luna of TerraUSD, alleging involvement in an unregistered securities issuance. (DL News)