SEC Probes Terraform Labs Deal with Former CEO of Jump Crypto

CS Web Team
By CS Web Team 2 Min Read

U.S. SEC probes Jump Crypto president over a secret deal with Do Kwon amid the ongoing civil lawsuit against Terraform Labs.

President of Jump Crypto Kanav Kariya’s involvement in the civil litigation against Terraform Labs has been investigated by the Securities and Exchange Commission (SEC).

In May 2021, when Terra’s (UST) stablecoin crashed and depegged, the SEC is investigating if Kariya and Do Kwon, the founder of Terraform Labs, entered into a covert deal. Personality Terraform FatMan claims that Kariya was questioned by the agency. With a Fifth Amendment plea on November 8, the president of Jump mostly sidestepped responding to the agency’s inquiries.

During Devon Staren’s deposition of Kariya, the SEC lawyer, Jump was asked to purchase tokens to assist Terraform in restoring the UST peg. In return, Do Kwon was to modify Jump’s LUNA vesting timeline. Kariya claimed the right to plead the Fifth while remaining silent.

In addition, Staren posted two documents containing a screenshot and a video related to the complaint. When Staren questioned Kariya if he recognized the footage after it was aired, he declined to respond and reiterated his Fifth Amendment rights.

The allegations that Jump manipulated the price of UST and AnchorUST for purported benefits in May 2021 were also alluded to by the SEC’s inquiry. While the court filing was posted a few days ago on October 28, Kariya’s deposition took place on August 18.

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