Hello there, I hope you are fine I am lucky ali, and most welcome to my other blog. Nowadays there is so much news regarding crypto scams and this is a worrying thing because people are easily trapped which is not good. The only thing is education which is needed for the new users who are coming to the crypto world. Crypto education is necessary for everyone who wants to join this field it is not less than hell if you dive into the crypto world without getting enough knowledge.
So talking about The SEC, it has announced that Tai Mo Shan Limited which is a company that has agreed to pay $123 million to resolve allegations that it misled crypto investors about the financial stability of Terra’s algorithmic stable crypto, TerraUSD.
Tai Mo Shan Company accused of involvement in fraud
Tai Mo Shan, a subsidiary company of Jump Crypto Holdings, and this company was accused of participating in fraudulent practices to stabilize the stablecoin TerraUSD’s $1 peg. According to the Security Exchange Commission complaint, this particular firm purchased more than $20 million worth of TerraUSD (UST) stablecoins on days when its value dropped below $1. Now you said this is normal but in reality, it is not because these actions allegedly misled other crypto investors into believing that UST stablecoin’s algorithmic mechanisms, which were designed to maintain the peg value, were operating independently. And this is where the problem arises.
The Security Exchange Commission further alleged that Tai Mo Shan's trading activities were induced by Terraform Labs a crypto firm, that offered discounted options for its sister token, do you know which is the sister token? It's Luna. Not only this but the allegations also include violations of securities rules and regulations in the underwriting and sale of the Luna cryptocurrency. Terra luna scam is very famous and we all know that. Anyway, Tai Mo Shan company allegedly acted as a statutory underwriter between the time of January 2021 and May 2022 by acquiring Luna token from Terraform Labs on a United States-based cryptocurrency platform and reselling it as a security.
Terraform Labs Scam during Crypto Winter
The collapse of UST in May 2022 was a dangerous time for the crypto community and along with this scam many people lost interest in crypto, This event was known as a major event during the so-called “crypto winter" or "bear season" and prompted significant losses in the crypto market. Terraform Labs company and its founder whose name is Do Kwon, were found responsible for fraud/scam this year, resulting in a $4.5 billion settlement with affected crypto investors.
Security Exchange Commission Chairman Gary Gensler underscored the case’s broad implications, saying, “Here, the impact reverberated across cryptocurrency markets, ultimately valuing the savings of countless crypto investors.” Well, the latest news is Gary will leave his post this year when the Donald Trump government takes charge this was needed because Gary was a crypto hater and we need a person who understands the technology and finally US is going to support crypto.
What is your viewpoint on this information please do let me know in the comment section and do not forget to share this article on social media thank you so much have a good day.
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 | Hi I am lucky ali from gujarat, india. I am a crypto enthusiast, blogger, and SEO developer. I am always interested in learning new things and getting new experiences. You can find me on hive, twitter and discord (Lucky Ali#6343). Sharing is caring, Thank you hive family ♥ |
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