Jump Crypto Holdings, the crypto arm of Jump Trading, has provided materials to the United States Securities and Exchange Commission (SEC) in the Terraform Labs case. The materials were approved for confidential treatment by Judge Jed Rakoff in a filing on Nov. 28. Jump Crypto Holdings was reportedly under scrutiny by the SEC for its involvement in the events leading to the depegging of TerraUSD (UST) and the downfall of Terra. Before Terra's collapse, Jump Crypto played a significant role in the firm's ecosystem, participating in funding rounds supposedly to establish a UST reserve.

The US Securities and Exchange Commission (SEC) has begun an investigation into whether Jump Crypto CEO Kanav Kariya signed a secret agreement with Do Kwon of Terraform Labs during the collapse of stablecoin TerraUSD. As part of the SEC's civil lawsuit against Terraform Labs, SEC lawyer Devon Staren dismissed Kanav Kariya in August, stating that Kwon and Kariya signed an agreement on May 23, 2021 (a few weeks after UST decoupled), in which Jump would help restore the UST peg by purchasing tokens. In exchange, Kwon allegedly agreed to modify Jump's LUNA loan agreement and cancel the exercise conditions. Kanav Kariya declined to answer the question.