The regulator fines Tai Mo Shan for allegedly misleading investors about Terra USD stablecoin's stability mechanism and illegal LUNA token distribution.
The case follows Terraform Labs' $4.5B fraud settlement from April 2024.
The Securities and Exchange Commission (SEC) has fined Tai Mo
Shan Limited $123 million for reportedly misleading investors about the stability
of the Terra USD (UST) stablecoin and conducting unregistered securities
transactions involving LUNA crypto assets.
Tai Mo Shan Hit With $123M SEC Fine Over Terra USD Stablecoin Allegations
According to the SEC statement,
Jump Crypto Holdings subsidiary acted negligently when it engaged in trading
activities that created a false impression about Terra USD's stability
mechanism during a May 2021 price decline.
The firm purchased over $20 million of UST tokens while
receiving incentives from Terraform Labs, masking the fact that the
stablecoin's dollar peg was being maintained through direct market intervention
rather than its promised algorithmic mechanism.
“This case reminds us that, too many times in the crypto
markets, we’ve seen significant investor losses due to fraud,” said SEC Chair
Gary Gensler. “Here, the impact reverberated throughout the crypto markets,
eventually costing the savings of countless investors. Regardless of the
labels, crypto market participants should comply with the securities laws where
applicable and not deceive the public. Otherwise, investors get hurt.”
The settlement includes $73.5 million in disgorgement, $12.9
million in interest, and a $36.7 million civil penalty. Tai Mo Shan agreed to
the terms without admitting or denying the findings.
Terra Ecosystem Collapse Led to $50B Cryptocurrency Losses
The cryptocurrency market experienced a significant
disruption when Terra's ecosystem, one of the largest blockchain networks,
failed in May 2022, resulting in substantial market value losses and broader
industry implications.
The situation deteriorated when large withdrawals from the
Anchor Protocol triggered a deviation in UST's dollar peg. This initial price
movement led to increased selling pressure, causing both UST and LUNA tokens to
decline rapidly. LUNA, which had reached record highs earlier that spring,
depreciated to negligible values within days.
Do Kwon, Co-Founder, and CEO of Terraform Labs (TFL).
The Terra blockchain temporarily ceased operations as market
participants attempted to process transactions amid the price decline. The
event affected multiple cryptocurrency firms, leading to operational challenges
for several digital asset lenders and trading platforms.
The incident prompted regulatory bodies worldwide to
increase their scrutiny of stablecoin mechanisms and cryptocurrency markets.
Financial supervisors have since implemented stricter oversight measures for
digital asset operations, particularly focusing on stablecoin reserves and
trading practices, including MiCA in Europe.
The Securities and Exchange Commission (SEC) has fined Tai Mo
Shan Limited $123 million for reportedly misleading investors about the stability
of the Terra USD (UST) stablecoin and conducting unregistered securities
transactions involving LUNA crypto assets.
Tai Mo Shan Hit With $123M SEC Fine Over Terra USD Stablecoin Allegations
According to the SEC statement,
Jump Crypto Holdings subsidiary acted negligently when it engaged in trading
activities that created a false impression about Terra USD's stability
mechanism during a May 2021 price decline.
The firm purchased over $20 million of UST tokens while
receiving incentives from Terraform Labs, masking the fact that the
stablecoin's dollar peg was being maintained through direct market intervention
rather than its promised algorithmic mechanism.
“This case reminds us that, too many times in the crypto
markets, we’ve seen significant investor losses due to fraud,” said SEC Chair
Gary Gensler. “Here, the impact reverberated throughout the crypto markets,
eventually costing the savings of countless investors. Regardless of the
labels, crypto market participants should comply with the securities laws where
applicable and not deceive the public. Otherwise, investors get hurt.”
The settlement includes $73.5 million in disgorgement, $12.9
million in interest, and a $36.7 million civil penalty. Tai Mo Shan agreed to
the terms without admitting or denying the findings.
Terra Ecosystem Collapse Led to $50B Cryptocurrency Losses
The cryptocurrency market experienced a significant
disruption when Terra's ecosystem, one of the largest blockchain networks,
failed in May 2022, resulting in substantial market value losses and broader
industry implications.
The situation deteriorated when large withdrawals from the
Anchor Protocol triggered a deviation in UST's dollar peg. This initial price
movement led to increased selling pressure, causing both UST and LUNA tokens to
decline rapidly. LUNA, which had reached record highs earlier that spring,
depreciated to negligible values within days.
Do Kwon, Co-Founder, and CEO of Terraform Labs (TFL).
The Terra blockchain temporarily ceased operations as market
participants attempted to process transactions amid the price decline. The
event affected multiple cryptocurrency firms, leading to operational challenges
for several digital asset lenders and trading platforms.
The incident prompted regulatory bodies worldwide to
increase their scrutiny of stablecoin mechanisms and cryptocurrency markets.
Financial supervisors have since implemented stricter oversight measures for
digital asset operations, particularly focusing on stablecoin reserves and
trading practices, including MiCA in Europe.
Damian's adventure with financial markets began at the Cracow University of Economics, where he obtained his MA in finance and accounting. Starting from the retail trader perspective, he collaborated with brokerage houses and financial portals in Poland as an independent editor and content manager. His adventure with Finance Magnates began in 2016, where he is working as a business intelligence analyst.
Dormant Silk Road-Linked Crypto Wallets Come Back to Life With $3M in Bitcoin Transfers
Exness expands its presence in Africa: Inside our interview with Paul Margarites in Cape Town
Exness expands its presence in Africa: Inside our interview with Paul Margarites in Cape Town
Finance Magnates met with Paul Margarites, Exness regional commercial director for Sub-Saharan Africa, during a visit to the firm’s office opening in Cape Town. In this talk, led by Andrea Badiola Mateos, Co-CEO at Finance Magnates, Paul shares views on the South African trading space, local user behavior, mobile trends, regulation, team growth, and how Exness plans to grow in more markets across the region. @Exness
Read the article at: https://www.financemagnates.com/thought-leadership/exness-expands-its-presence-in-africa-inside-our-interview-with-paul-margarites/
#exness #financemagnates #exnesstrading #CFDtrading #tradeonline #africanews #capetown
Finance Magnates met with Paul Margarites, Exness regional commercial director for Sub-Saharan Africa, during a visit to the firm’s office opening in Cape Town. In this talk, led by Andrea Badiola Mateos, Co-CEO at Finance Magnates, Paul shares views on the South African trading space, local user behavior, mobile trends, regulation, team growth, and how Exness plans to grow in more markets across the region. @Exness
Read the article at: https://www.financemagnates.com/thought-leadership/exness-expands-its-presence-in-africa-inside-our-interview-with-paul-margarites/
#exness #financemagnates #exnesstrading #CFDtrading #tradeonline #africanews #capetown
Interview with Jas Shah
Builder | Adviser | Fintech Writer | Product Strategist
In this episode, Jonathan Fine sat down with Jas Shah, one of the most thoughtful voices in global fintech. Known for his work across advisory, product, stablecoins, and his widely read writing, Jas brings a rare combination of industry insight and plain-spoken clarity.
We talk about his first impression of the Summit, the projects that keep him busy today, and how they connect to the stablecoin panel he joined. Jas shares his view on the link between fintech, wealthtech and retail brokers, especially as firms like Revolut, eToro and Trading212 blur long-standing lines in the market.
We also explore what stablecoin adoption might look like for retail investment platforms, including a few product and UX angles that are not obvious at first glance.
To close, Jas explains how he thinks about writing, and how he approaches “shipping” pieces that spark debate across the industry.
Interview with Jas Shah
Builder | Adviser | Fintech Writer | Product Strategist
In this episode, Jonathan Fine sat down with Jas Shah, one of the most thoughtful voices in global fintech. Known for his work across advisory, product, stablecoins, and his widely read writing, Jas brings a rare combination of industry insight and plain-spoken clarity.
We talk about his first impression of the Summit, the projects that keep him busy today, and how they connect to the stablecoin panel he joined. Jas shares his view on the link between fintech, wealthtech and retail brokers, especially as firms like Revolut, eToro and Trading212 blur long-standing lines in the market.
We also explore what stablecoin adoption might look like for retail investment platforms, including a few product and UX angles that are not obvious at first glance.
To close, Jas explains how he thinks about writing, and how he approaches “shipping” pieces that spark debate across the industry.
Vitalii Bulynin Talks About Versus Trade, New Pairs, and Big Plans
Vitalii Bulynin Talks About Versus Trade, New Pairs, and Big Plans
In this interview, Versus Trade Co-Founder Vitalii Bulynin explains how the company got its license fast, why its trading pairs are fresh and fun, and what the team will build next.
He also discusses the most active pairs, the IB and MIB plans, and hiring needs for new markets.
Watch the whole talk to learn more about how Versus Trade works and where it is heading.
#financemagnates #VersusTrade #TradingPairs #BTCvsGold #goldtrading #innovation
In this interview, Versus Trade Co-Founder Vitalii Bulynin explains how the company got its license fast, why its trading pairs are fresh and fun, and what the team will build next.
He also discusses the most active pairs, the IB and MIB plans, and hiring needs for new markets.
Watch the whole talk to learn more about how Versus Trade works and where it is heading.
#financemagnates #VersusTrade #TradingPairs #BTCvsGold #goldtrading #innovation
Marketing in 2026 Audiences, Costs, and Smarter AI
Marketing in 2026 Audiences, Costs, and Smarter AI
As brokers eye B2B business and compete with fintechs and crypto exchanges alike, marketers need to act wisely with often limited budgets. AI can offer scalable solutions, but only if used properly.
Join seasoned marketing executives and specialists as they discuss the main challenges they identify in financial services in 2026 and how they address them.
Attendees of this session will walk away with:
- A nuts-and-bolts account of acquisition costs across platforms and geos
- Analysis of today’s multi-layered audience segments and differences in behaviour
- First-hand account of how global brokers balance consistency and local flavour
- Notes from the field about intelligently using AI and automation in marketing
Speakers:
-Yam Yehoshua, Editor-In-Chief at Finance Magnates
-Federico Paderni, Managing Director for Growth Markets in Europe at X
-Jo Benton, Chief Marketing Officer, Consulting | Fractional CMO
-Itai Levitan, Head of Strategy at investingLive
-Roberto Napolitano, CMO at Innovate Finance
-Tony Cross, Director at Monk Communications
#fmls #fmls25 #fmevents #FintechMarketing #AI #DigitalStrategy #Fintech #Innovation
Connect with us at:
🔗 LinkedIn: / financemagnates-events
👍 Facebook: / financemagnatesevents
📸 Instagram: / fmevents_official
🐦 Twitter: / f_m_events
🎥 TikTok: / fmevents_official
As brokers eye B2B business and compete with fintechs and crypto exchanges alike, marketers need to act wisely with often limited budgets. AI can offer scalable solutions, but only if used properly.
Join seasoned marketing executives and specialists as they discuss the main challenges they identify in financial services in 2026 and how they address them.
Attendees of this session will walk away with:
- A nuts-and-bolts account of acquisition costs across platforms and geos
- Analysis of today’s multi-layered audience segments and differences in behaviour
- First-hand account of how global brokers balance consistency and local flavour
- Notes from the field about intelligently using AI and automation in marketing
Speakers:
-Yam Yehoshua, Editor-In-Chief at Finance Magnates
-Federico Paderni, Managing Director for Growth Markets in Europe at X
-Jo Benton, Chief Marketing Officer, Consulting | Fractional CMO
-Itai Levitan, Head of Strategy at investingLive
-Roberto Napolitano, CMO at Innovate Finance
-Tony Cross, Director at Monk Communications
#fmls #fmls25 #fmevents #FintechMarketing #AI #DigitalStrategy #Fintech #Innovation
Connect with us at:
🔗 LinkedIn: / financemagnates-events
👍 Facebook: / financemagnatesevents
📸 Instagram: / fmevents_official
🐦 Twitter: / f_m_events
🎥 TikTok: / fmevents_official
Fail Better Trading Tech to Tackle Industry Risks
Fail Better Trading Tech to Tackle Industry Risks
Much like their traders in the market, brokers must diversify to manage risk and stay resilient. But that can get costly, clunky, and lengthy.
This candid panel brings together builders across the trading infrastructure space to uncover the shifting dynamics behind tools, interfaces, and full-stack ambitions.
Attendees will hear:
-Why platform dependency has become one of the most overlooked risks in the trading business?
-Buy vs. build: What do hybrid models look like, and why are industry graveyards filled with failed ‘killer apps’?
-How AI is already changing execution, risk, and reporting—and what’s next?
-Which features, assets, and tools gain the most traction, and where brokers should look for tech-driven retention?
Speakers:
-Stephen Miles, Chief Revenue Officer at FYNXT
-John Morris, Co-Founder at FXBlue
-Matthew Smith, Group Chair & CEO at EC Markets
-Tom Higgins, Founder & CEO at Gold-i
-Gil Ben Hur, Founder at 5% Group
#fmls #fmls25 #fmevents #Brokers #Trading #Fintech #FintechInnovation #TradingTechnology #Innovation
Connect with us at:
🔗 LinkedIn: / financemagnates-events
👍 Facebook: / financemagnatesevents
📸 Instagram: / fmevents_official
🐦 Twitter: / f_m_events
🎥 TikTok: / fmevents_official
Much like their traders in the market, brokers must diversify to manage risk and stay resilient. But that can get costly, clunky, and lengthy.
This candid panel brings together builders across the trading infrastructure space to uncover the shifting dynamics behind tools, interfaces, and full-stack ambitions.
Attendees will hear:
-Why platform dependency has become one of the most overlooked risks in the trading business?
-Buy vs. build: What do hybrid models look like, and why are industry graveyards filled with failed ‘killer apps’?
-How AI is already changing execution, risk, and reporting—and what’s next?
-Which features, assets, and tools gain the most traction, and where brokers should look for tech-driven retention?
Speakers:
-Stephen Miles, Chief Revenue Officer at FYNXT
-John Morris, Co-Founder at FXBlue
-Matthew Smith, Group Chair & CEO at EC Markets
-Tom Higgins, Founder & CEO at Gold-i
-Gil Ben Hur, Founder at 5% Group
#fmls #fmls25 #fmevents #Brokers #Trading #Fintech #FintechInnovation #TradingTechnology #Innovation
Connect with us at:
🔗 LinkedIn: / financemagnates-events
👍 Facebook: / financemagnatesevents
📸 Instagram: / fmevents_official
🐦 Twitter: / f_m_events
🎥 TikTok: / fmevents_official
