The SEC is investigating the alleged secret agreement between Do Kwon and the former president of Jump Crypto during the UST collapse

The U.S. SEC has launched an investigation into whether former Jump Crypto president Kanav Kariya entered into a secret agreement with Terraform Labs’ Do Kwon during the TerraUSD collapse. In August, SEC attorney Devon Staren deposed Kanav Kariya as part of the SEC's ongoing civil lawsuit against Terraform Labs. The SEC previously accused Do Kwon of "implementing a fraudulent scheme" through unregistered securities LUNA and UST, involving an amount of up to $40 billion. In Kariya’s testimony released late last month, Staren stated that Do Kwon and Kariya signed an agreement on May 23, 2021 (a few weeks after UST decoupled) with the terms that Jump would help restore UST by purchasing tokens Anchored. In exchange, Kwon will allegedly amend Jump's LUNA loan agreement and cancel the exercise conditions. When asked whether Do Kwon agreed to the terms, Kariya again refused to answer the question. It is reported that in the SEC’s case against Terraform Labs, both parties filed for summary judgment. The defense argued that the SEC did not sufficiently prove that Kwon violated securities laws; the SEC countered that token holders were "clearly" investing. (Blockworks)