{"id":12696,"date":"2023-11-11T22:03:50","date_gmt":"2023-11-11T22:03:50","guid":{"rendered":"https:\/\/infundpros.com\/markets\/crypto\/jump-crypto-pocketed-over-1-billion-in-secret-do-kwon-deal-dodges-questions-from-sec\/"},"modified":"2023-11-11T22:03:53","modified_gmt":"2023-11-11T22:03:53","slug":"jump-crypto-pocketed-over-1-billion-in-secret-do-kwon-deal-dodges-questions-from-sec","status":"publish","type":"post","link":"https:\/\/infundpros.com\/?p=12696","title":{"rendered":"Jump Crypto Pocketed over $1 Billion in Secret Do Kwon Deal, Dodges Questions from SEC"},"content":{"rendered":"
\n

President of Jump Crypto, Kanav Kariya, pleaded his Fifth Amendment rights while being questioned by the U.S. Securities and Exchange Commission over an alleged hidden market-making scheme with Terraform Labs\u2019 founder, Do Kwon, that saw his company pocket over $1 billion.\u00a0<\/p>\n

Kariya\u2019s secret deal executed while allegedly \u201cpromoting transparency\u201d<\/h2>\n

<\/span>
When asked by SEC counsel, Devon Staren, whether or not he made an agreement with Kwon to buy up massive amounts of UST in order to restore the token\u2019s value, Kariya refused to elaborate and invoked his Fifth Amendment rights.<\/p>\n

\u201cUnder instruction of counsel I exercise my rights under the Fifth Amendment to answer the question at this time,\u201d Kariya said.<\/p>\n

The deal, which saw Jump Crypto purchase large swaths of the token in exchange for an amendment to Jump\u2019s LUNA loan agreement by lifting its vesting conditions, was established on May 23, 2021, nearly two weeks after UST and LUNA destabilized on May 9th and May 12th, respectively.<\/p>\n

Reportedly, Jump purchased LUNA coins valued at $90 for just $0.40. Kariya, meanwhile, served as a member of the governing council for Luna Foundation Guard, which claimed to ensure \u201cactivities of the Foundation are aligned with promoting transparency, governance, advancing research and development in open and decentralized networks.\u201d<\/p>\n

SEC alleges Kwon wiped $40 billion in market value<\/h2>\n

<\/span>
Brought forward by the SEC in Manhattan federal court in February 2023, Kwon, along with his firm Terraform Labs Pte. Ltd., is currently facing a civil fraud lawsuit for misleading investors.\u00a0<\/p>\n

In the February complaint, the SEC alleged that Terraform and Kwon \u201cperpetrated a fraudulent scheme that led to the loss of at least $40 billion of market value, including devastating losses for U.S. retail and institutional investors.\u201d<\/p>\n

Moreover, the SEC claims that \u201cKwon and Terraform repeatedly touted the restoration of the $1.00 peg as a triumph of decentralization and the \u2018automatic self-healing\u2019 UST\/LUNA algorithm\u2019\u201d\u2019 while \u201cmisleadingly omitting the actual reason why the $1.00 peg was restored: the third party\u2019s intervention to prop up the UST\u2019s price.\u201d<\/p>\n

Kwon\u2019s potential extradition<\/h2>\n

<\/span>
US regulators have requested a summary judgment of the case as opposed to taking it to trial, while Kwon\u2019s defense has argued that the SEC has failed to prove any securities laws have been violated.\u00a0<\/p>\n

Previously, Kwon had an Interpol\u2019s Red Notice out for his arrest before being sentenced in Montenegro for document forgery in June 2023.<\/p>\n

If extradited to the U.S., he would likely join recently convicted FTX founder, Sam Bankman-Fried, at the Metropolitan Detention Center in Brooklyn, New York.\u00a0<\/p>\n

\n
\n

\n
\n Enter your email for our Free Daily Newsletter <\/em>\n <\/p>\n

A quick 3min read about today’s crypto news!<\/p>\n

<\/span>\n<\/div>\n<\/p><\/div>\n<\/p><\/div>\n

Read the full article here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

President of Jump Crypto, Kanav Kariya, pleaded his Fifth Amendment rights while being questioned by the U.S. Securities and Exchange Commission over…<\/p>\n","protected":false},"author":1,"featured_media":12697,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[28],"tags":[],"class_list":{"0":"post-12696","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-crypto"},"yoast_head":"\nJump Crypto Pocketed over $1 Billion in Secret Do Kwon Deal, Dodges Questions from SEC | inFundPros<\/title>\n<meta name=\"description\" content=\"President of Jump Crypto, Kanav Kariya, pleaded his Fifth Amendment rights while being questioned by the U.S. Securities and Exchange Commission over an\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/infundpros.com\/?p=12696\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Jump Crypto Pocketed over $1 Billion in Secret Do Kwon Deal, Dodges Questions from SEC | inFundPros\" \/>\n<meta property=\"og:description\" content=\"President of Jump Crypto, Kanav Kariya, pleaded his Fifth Amendment rights while being questioned by the U.S. Securities and Exchange Commission over an\" \/>\n<meta property=\"og:url\" content=\"https:\/\/infundpros.com\/?p=12696\" \/>\n<meta property=\"og:site_name\" content=\"inFundPros\" \/>\n<meta property=\"article:published_time\" content=\"2023-11-11T22:03:50+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-11-11T22:03:53+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/infundpros.com\/wp-content\/uploads\/2023\/11\/1699630597-court-3-2-scaled.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"2560\" \/>\n\t<meta property=\"og:image:height\" content=\"1920\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Press Room\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Press Room\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/infundpros.com\/?p=12696#article\",\"isPartOf\":{\"@id\":\"https:\/\/infundpros.com\/?p=12696\"},\"author\":{\"name\":\"Press Room\",\"@id\":\"https:\/\/infundpros.com\/#\/schema\/person\/87f7e632b195ea95c91503d9281f5eff\"},\"headline\":\"Jump Crypto Pocketed over $1 Billion in Secret Do Kwon Deal, Dodges Questions from SEC\",\"datePublished\":\"2023-11-11T22:03:50+00:00\",\"dateModified\":\"2023-11-11T22:03:53+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/infundpros.com\/?p=12696\"},\"wordCount\":453,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/infundpros.com\/#organization\"},\"articleSection\":[\"Crypto\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/infundpros.com\/?p=12696#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/infundpros.com\/?p=12696\",\"url\":\"https:\/\/infundpros.com\/?p=12696\",\"name\":\"Jump Crypto Pocketed over $1 Billion in Secret Do Kwon Deal, Dodges Questions from SEC | inFundPros\",\"isPartOf\":{\"@id\":\"https:\/\/infundpros.com\/#website\"},\"datePublished\":\"2023-11-11T22:03:50+00:00\",\"dateModified\":\"2023-11-11T22:03:53+00:00\",\"description\":\"President of Jump Crypto, Kanav Kariya, pleaded his Fifth Amendment rights while being questioned by the U.S. Securities and Exchange Commission over an\",\"breadcrumb\":{\"@id\":\"https:\/\/infundpros.com\/?p=12696#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/infundpros.com\/?p=12696\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/infundpros.com\/?p=12696#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/infundpros.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Jump Crypto Pocketed over $1 Billion in Secret Do Kwon Deal, Dodges Questions from SEC\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/infundpros.com\/#website\",\"url\":\"https:\/\/infundpros.com\/\",\"name\":\"Fintech Advance\",\"description\":\"Latest Finance and Tech News and Updates\",\"publisher\":{\"@id\":\"https:\/\/infundpros.com\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/infundpros.com\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/infundpros.com\/#organization\",\"name\":\"Fintech Advance\",\"url\":\"https:\/\/infundpros.com\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/infundpros.com\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/infundpros.com\/wp-content\/uploads\/2023\/10\/tech-logo.png\",\"contentUrl\":\"https:\/\/infundpros.com\/wp-content\/uploads\/2023\/10\/tech-logo.png\",\"width\":409,\"height\":70,\"caption\":\"Fintech Advance\"},\"image\":{\"@id\":\"https:\/\/infundpros.com\/#\/schema\/logo\/image\/\"}},{\"@type\":\"Person\",\"@id\":\"https:\/\/infundpros.com\/#\/schema\/person\/87f7e632b195ea95c91503d9281f5eff\",\"name\":\"Press Room\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/infundpros.com\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/infundpros.com\/wp-content\/uploads\/2023\/10\/avatar_user_1_1697230663-96x96.png\",\"contentUrl\":\"https:\/\/infundpros.com\/wp-content\/uploads\/2023\/10\/avatar_user_1_1697230663-96x96.png\",\"caption\":\"Press Room\"},\"sameAs\":[\"https:\/\/infundpros.com\"],\"url\":\"https:\/\/infundpros.com\/?author=1\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Jump Crypto Pocketed over $1 Billion in Secret Do Kwon Deal, Dodges Questions from SEC | inFundPros","description":"President of Jump Crypto, Kanav Kariya, pleaded his Fifth Amendment rights while being questioned by the U.S. Securities and Exchange Commission over an","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/infundpros.com\/?p=12696","og_locale":"en_US","og_type":"article","og_title":"Jump Crypto Pocketed over $1 Billion in Secret Do Kwon Deal, Dodges Questions from SEC | inFundPros","og_description":"President of Jump Crypto, Kanav Kariya, pleaded his Fifth Amendment rights while being questioned by the U.S. Securities and Exchange Commission over an","og_url":"https:\/\/infundpros.com\/?p=12696","og_site_name":"inFundPros","article_published_time":"2023-11-11T22:03:50+00:00","article_modified_time":"2023-11-11T22:03:53+00:00","og_image":[{"width":2560,"height":1920,"url":"https:\/\/infundpros.com\/wp-content\/uploads\/2023\/11\/1699630597-court-3-2-scaled.jpg","type":"image\/jpeg"}],"author":"Press Room","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Press Room","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/infundpros.com\/?p=12696#article","isPartOf":{"@id":"https:\/\/infundpros.com\/?p=12696"},"author":{"name":"Press Room","@id":"https:\/\/infundpros.com\/#\/schema\/person\/87f7e632b195ea95c91503d9281f5eff"},"headline":"Jump Crypto Pocketed over $1 Billion in Secret Do Kwon Deal, Dodges Questions from SEC","datePublished":"2023-11-11T22:03:50+00:00","dateModified":"2023-11-11T22:03:53+00:00","mainEntityOfPage":{"@id":"https:\/\/infundpros.com\/?p=12696"},"wordCount":453,"commentCount":0,"publisher":{"@id":"https:\/\/infundpros.com\/#organization"},"articleSection":["Crypto"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/infundpros.com\/?p=12696#respond"]}]},{"@type":"WebPage","@id":"https:\/\/infundpros.com\/?p=12696","url":"https:\/\/infundpros.com\/?p=12696","name":"Jump Crypto Pocketed over $1 Billion in Secret Do Kwon Deal, Dodges Questions from SEC | inFundPros","isPartOf":{"@id":"https:\/\/infundpros.com\/#website"},"datePublished":"2023-11-11T22:03:50+00:00","dateModified":"2023-11-11T22:03:53+00:00","description":"President of Jump Crypto, Kanav Kariya, pleaded his Fifth Amendment rights while being questioned by the U.S. Securities and Exchange Commission over an","breadcrumb":{"@id":"https:\/\/infundpros.com\/?p=12696#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/infundpros.com\/?p=12696"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/infundpros.com\/?p=12696#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/infundpros.com\/"},{"@type":"ListItem","position":2,"name":"Jump Crypto Pocketed over $1 Billion in Secret Do Kwon Deal, Dodges Questions from SEC"}]},{"@type":"WebSite","@id":"https:\/\/infundpros.com\/#website","url":"https:\/\/infundpros.com\/","name":"Fintech Advance","description":"Latest Finance and Tech News and Updates","publisher":{"@id":"https:\/\/infundpros.com\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/infundpros.com\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/infundpros.com\/#organization","name":"Fintech Advance","url":"https:\/\/infundpros.com\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/infundpros.com\/#\/schema\/logo\/image\/","url":"https:\/\/infundpros.com\/wp-content\/uploads\/2023\/10\/tech-logo.png","contentUrl":"https:\/\/infundpros.com\/wp-content\/uploads\/2023\/10\/tech-logo.png","width":409,"height":70,"caption":"Fintech Advance"},"image":{"@id":"https:\/\/infundpros.com\/#\/schema\/logo\/image\/"}},{"@type":"Person","@id":"https:\/\/infundpros.com\/#\/schema\/person\/87f7e632b195ea95c91503d9281f5eff","name":"Press Room","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/infundpros.com\/#\/schema\/person\/image\/","url":"https:\/\/infundpros.com\/wp-content\/uploads\/2023\/10\/avatar_user_1_1697230663-96x96.png","contentUrl":"https:\/\/infundpros.com\/wp-content\/uploads\/2023\/10\/avatar_user_1_1697230663-96x96.png","caption":"Press Room"},"sameAs":["https:\/\/infundpros.com"],"url":"https:\/\/infundpros.com\/?author=1"}]}},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/infundpros.com\/index.php?rest_route=\/wp\/v2\/posts\/12696","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/infundpros.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/infundpros.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/infundpros.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/infundpros.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=12696"}],"version-history":[{"count":1,"href":"https:\/\/infundpros.com\/index.php?rest_route=\/wp\/v2\/posts\/12696\/revisions"}],"predecessor-version":[{"id":12698,"href":"https:\/\/infundpros.com\/index.php?rest_route=\/wp\/v2\/posts\/12696\/revisions\/12698"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/infundpros.com\/index.php?rest_route=\/wp\/v2\/media\/12697"}],"wp:attachment":[{"href":"https:\/\/infundpros.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=12696"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/infundpros.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=12696"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/infundpros.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=12696"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}