Tai Mo Shan Ltd., the cryptocurrency arm of Jump Trading, has agreed to pay $123 million to settle allegations by U.S. regulators

Tai Mo Shan Ltd., the cryptocurrency arm of Jump Trading, has agreed to pay $123 million to settle allegations by U.S. regulators that it misled investors about the stability of the TerraUSD algorithmic stablecoin.
The Securities Exchange Commission said in a statement Friday that the company also settled allegations that it violated securities laws in underwriting TerraUSD's sister token, Luna. Tai Mo Shan did not admit or deny the agency's allegations in agreeing to the settlement.
TerraUSD was supposed to achieve a constant value of $1 through complex algorithms and trader incentives involving Luna. Instead, Tai Mo Shan's heavy buying helped stabilise the coin, deceiving the market into believing the algorithmic mechanisms were working, the Securities Exchange Commission said.