{"id":204437,"date":"2023-12-01T18:23:52","date_gmt":"2023-12-01T12:53:52","guid":{"rendered":"https:\/\/dripp.zone\/news\/?p=204437"},"modified":"2023-12-01T18:23:52","modified_gmt":"2023-12-01T12:53:52","slug":"heres-who-helped-us-sec-prepares-fraud-case-against-terras-do-kwon-wsj-crypto-news","status":"publish","type":"post","link":"https:\/\/dripp.zone\/news\/heres-who-helped-us-sec-prepares-fraud-case-against-terras-do-kwon-wsj-crypto-news\/","title":{"rendered":"Here’s Who Helped US SEC Prepares Fraud Case Against Terra’s Do Kwon: WSJ – Crypto News"},"content":{"rendered":"

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The defense team of Terra and Do Kwon<\/a> said a Jump Crypto<\/strong> whistleblower helped the U.S. Securities and Exchange Commission (SEC) build a case against the defendants. The SEC accused Terra and Do Kwon of multi-billion crypto fraud, misleading investors about UST algorithmic stablecoin (now USTC), and violating securities and exchange regulations.<\/p>\n

Jump Crypto Whistleblower Assisted SEC Against Do Kwon<\/h2>\n

A mystery \u201cJump whistleblower\u201d assisted the U.S. SEC in bringing a fraud case against Terra creator Do Kwon, defense lawyer Douglas Henkin<\/strong> said in a court on November 30. The SEC claims Jump Trading\u2019s crypto arm Jump Crypto had a secret deal with Do Kwon to manipulate UST stablecoin price in May 2021.<\/p>\n

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Anonymous whistleblowers provided evidence to the U.S. SEC in filing fraud charges against Do Kwon, including one whistleblower from market-making giant Jump Trading Group. Henkin argued the whistleblower <\/span>who provided evidence admitted during his testimony that he had no direct, first-hand knowledge of the 2021 transactions, as per<\/a> Wall Street Journal.<\/span><\/p>\n

The SEC accused Do Kwon of deceiving investors by publicly claiming that his partner Daniel Shin\u2019s<\/b>\u00a0Chai firm used the Terra blockchain to settle payment transactions. <\/span><\/p>\n

Mark Califano<\/strong>, another attorney for Do Kwon, cleared Judge Rakoff that the firm actually used traditional payment technology. <\/span>Lawyers called the whistleblower \u201cextremely biased\u201d and said he was \u201ccaught lying multiple times.\u201d<\/span><\/p>\n

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Read More: Binance Burns 4 Billion Terra Luna Classic (LUNC) Tokens<\/a><\/strong><\/p>\n

Do Kwon Extradition in Process<\/h2>\n

On November 24, the Montenegro High Court approved the extradition of Do Kwon<\/a> to South Korea or the United States. <\/span>Montenegro\u2019s Minister of Justice Andrej Milovi\u0107 will decide which country has priority in case of possible extradition.<\/span><\/p>\n

Judge Rakoff agreed<\/a> to submissions of discovery documents as sealed from Jump Crypto due to concerns over the whistleblower\u2019s identity. However, the court reminded Terra, Do Kwon, and related parties about the discretion to make public any confidential information submitted later in the motion practice or trial. The court will provide prior notice to the defendants\u2019 counsel when the disclosure of confidential documents is termed necessary by the court.<\/p>\n

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Varinder has 10 years of experience in the Fintech sector, with over 5 years dedicated to blockchain, crypto, and Web3 developments. Being a technology enthusiast and analytical thinker, he has shared his knowledge of disruptive technologies in over 5000+ news, articles, and papers. With CoinGape Media, Varinder believes in the huge potential of these innovative future technologies. He is currently covering all the latest updates and developments in the crypto industry. <\/p>\n<\/p><\/div>\n

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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.<\/p>\n<\/div><\/div>\n<\/p><\/div>\n

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The defense team of Terra and Do Kwon said a Jump Crypto whistleblower helped the U.S. Securities and Exchange Commission (SEC) build a case against the defendants. The SEC accused Terra and Do Kwon of multi-billion crypto fraud, misleading investors about UST algorithmic stablecoin (now USTC), and violating securities and exchange regulations. Jump Crypto Whistleblower […]<\/p>\n","protected":false},"author":2,"featured_media":161524,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[192,29,198,194,195,199,196,193,197,200],"class_list":["post-204437","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-blockchain-business","tag-business","tag-coins","tag-crypto-business","tag-cryptocurrency-business","tag-fiat","tag-metaverse-business","tag-nft-business","tag-token","tag-token-business"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/204437","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=204437"}],"version-history":[{"count":2,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/204437\/revisions"}],"predecessor-version":[{"id":204439,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/204437\/revisions\/204439"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/161524"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=204437"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=204437"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=204437"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}