Bringing to the forefront again the responsibility chain after the Terra collapse—and settling old accounts involving UST and LUNA.
According to a Caixin report, Huzewen Hu, a professional poker player and crypto investor, invested about $80 million between May 2021 and May 2022 to buy TerraUSD (UST) and LUNA. At the peak, the value of his holdings exceeded $800 million; afterward, the LUNA price nearly went to zero. He has since sued Jump Trading and related crypto business companies and executives in Chicago, USA, seeking at least $500 million in damages for losses incurred after the collapse tied to his large UST and LUNA positions.
The appeal of these kinds of lawsuits isn’t whether old coins rebound, but whether the relevant materials will continue to implicate more institutional responsibilities—information disclosure—and potential avenues for compensation. One observation is that the compliance narrative surrounding the old Terra assets and market makers may remain under pressure. Another is that the market will pay closer attention to whether the lawsuit expands to include more related parties. The event will not directly change the fundamentals of LUNC or USTC, but it will once again put the market-making, rescue, and information-disclosure responsibilities from the 2022 Terra collapse front and center.
Which do you want to see more of in the follow-up disclosures: institutional responsibility, or compensation pathways?
Figure 1: Huzewen Hu sues Jump for $500 million in claims · Source page partial screenshot
Image source: https://www.wublock123.com/news/caixin-huzhewen-held-ust-luna-sues-jump-trading-claim-500m-68997
According to a Caixin report, Huzewen Hu, a professional poker player and crypto investor, invested about $80 million between May 2021 and May 2022 to buy TerraUSD (UST) and LUNA. At the peak, the value of his holdings exceeded $800 million; afterward, the LUNA price nearly went to zero. He has since sued Jump Trading and related crypto business companies and executives in Chicago, USA, seeking at least $500 million in damages for losses incurred after the collapse tied to his large UST and LUNA positions.
The appeal of these kinds of lawsuits isn’t whether old coins rebound, but whether the relevant materials will continue to implicate more institutional responsibilities—information disclosure—and potential avenues for compensation. One observation is that the compliance narrative surrounding the old Terra assets and market makers may remain under pressure. Another is that the market will pay closer attention to whether the lawsuit expands to include more related parties. The event will not directly change the fundamentals of LUNC or USTC, but it will once again put the market-making, rescue, and information-disclosure responsibilities from the 2022 Terra collapse front and center.
Which do you want to see more of in the follow-up disclosures: institutional responsibility, or compensation pathways?
Figure 1: Huzewen Hu sues Jump for $500 million in claims · Source page partial screenshot
Image source: https://www.wublock123.com/news/caixin-huzhewen-held-ust-luna-sues-jump-trading-claim-500m-68997
