Court docket filings by the Securities and Trade Fee have confirmed that crypto buying and selling agency Leap Buying and selling propped up Do Kwon’s failed algorithmic stablecoin TerraUSD (UST) a 12 months earlier than its collapse.

By buying greater than 62 million of the stablecoin tokens, the Chicago-based agency pushed the algorithmic stablecoin’s value again to $1 after it had misplaced its peg in Could 2021, in line with the courtroom filings. Later, Kwon, CEO of Terra and cocreator of Terraform Labs, touted the restoration as proof of the stablecoin algorithm’s self-healing talents and its means to keep up a greenback peg by way of a code-enabled balancing act with sister cryptocurrency Luna.

The SEC had beforehand revealed in its grievance in opposition to Terraform Labs and Kwon that an unnamed third celebration buying and selling associate had enormously profited from saving the Terra stablecoin from the brink of collapse. Citing unnamed sources, The Block first reported in February that the third celebration was Leap.

A 12 months earlier than Terra unraveled in what amounted to a crypto financial institution run on its algorithmic stablecoin, it obtained a multimillion-dollar money injection, and in trade, Terraform Labs, the corporate behind the Terra stablecoin, agreed to let Leap Buying and selling purchase Luna tokens for 30, 40, and 50 cents over a three-year interval.

This association netted Leap $1.28 billion, in line with a grievance by the SEC accusing Kwon and Terraform Labs of securities fraud and promoting unregistered securities. Leap Buying and selling has not been accused of wrongdoing. Earlier this month an investor filed a category motion lawsuit in opposition to Leap Buying and selling and Leap Crypto president Kanav Kariya for the corporate’s function in making the most of propping up Terra.

The latest courtroom filings by the SEC embrace a contract from November 2019 that outlines a three-year mortgage settlement between Terraform Labs and Leap subsidiary Tai Mo Shan Restricted for 30 million Luna tokens with a 2% annualized curiosity additionally payable in Luna tokens.

One other of the paperwork launched by the SEC contains an e-mail Kwon despatched to traders saying Terraform Labs had made an “vital association” with Leap and that the corporate had requested them to maintain quiet about it, in line with the Wall Avenue Journal.

Kwon is presently out on bail in Montenegro, the place he awaits trial on costs that he tried to make use of a solid Costa Rican passport. The U.S. and South Korea are each in search of to extradite him.

Leap didn’t instantly reply to a request for remark from Fortune. Leap Crypto, the digital belongings buying and selling unit, is planning to develop internationally and pull again from U.S. markets amid current elevated regulatory stress, in line with Bloomberg.