Overview
- Todd Snyder filed the complaint in the U.S. District Court for the Northern District of Illinois, naming Jump Trading LLC, co-founder William DiSomma, and former Jump Crypto president Kanav Kariya.
- The filing alleges undisclosed deals dating to 2019 that let Jump buy LUNA at steep discounts and a covert May 2021 intervention to restore TerraUSD’s peg that was publicly credited to the algorithm.
- The suit claims Jump later removed vesting and lockups to sell monthly LUNA allocations, earned roughly $1 billion from LUNA sales per prior SEC filings, and received nearly 50,000 BTC from the Luna Foundation Guard without a written agreement during the May 2022 collapse.
- Terraform Labs’ estate says the action seeks to recover value for creditors, noting about $300 million recovered so far and referencing prior settlements, including Terraform’s roughly $4.5 billion SEC resolution and Jump unit Tai Mo Shan’s $123 million payment in 2024.
- Jump denies the allegations as blame-shifting and says it will defend itself vigorously, while the case remains at the complaint stage and could lead to discovery of internal communications and trading records.