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19h ago

Terraform Labs Estate Sues Jump Trading for $4 Billion Over TerraUSD Collapse

The case sets up a potential discovery battle that could reveal internal records on deals said to prop up Terra’s stability.

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Terraform labs’ bankruptcy estate targets jump trading in $4b lawsuit
Jump Trading sued for $4 billion over Terraform Labs fallout Report
Jump trading sued for $4 billion in connection to do kwon’s terra labs collapse: wsj

Overview

  • The bankruptcy plan administrator, Todd Snyder, filed the suit in the U.S. District Court for the Northern District of Illinois against Jump Trading, co-founder William DiSomma, and former Jump Crypto president Kanav Kariya.
  • The complaint alleges undisclosed agreements dating to 2019 let Jump buy discounted LUNA, covertly restore TerraUSD’s peg in May 2021, and later remove vesting limits to sell holdings for about $1 billion.
  • It further claims the Luna Foundation Guard transferred nearly 50,000 bitcoin to Jump during the May 2022 unraveling without a written agreement.
  • Jump has rejected the allegations, calling the lawsuit a desperate attempt to shift blame, and says it will defend itself.
  • A Jump affiliate previously paid $123 million to settle related SEC findings, and the new suit could compel production of internal communications and trading records.