Jump Trading Calls Terraform Labs' $4.4 Billion Lawsuit a 'Shift of Blame'

Odaily reported that Jump Trading responded on Monday to a lawsuit filed by Terraform Labs bankruptcy trustee Todd Snyder. In December last year, Snyder sued Jump Trading along with several subsidiaries and two executives, accusing them of market manipulation, investor fraud, and self-trading, and seeking $4 billion in damages.

Jump Trading stated in its response that the lawsuit is a "transparent attempt" by Snyder to evade the $4.4 billion penalty imposed by the US Securities and Exchange Commission (SEC) on Terraform Labs in 2024, and claimed that Snyder "fabricated a series of allegations designed to shift Terraform's responsibility to the SEC and its creditors onto the defendants." Jump Trading also pointed out that the suit lacks key details, fails to specify each defendant's actions, does not indicate where the alleged violations occurred, and has exceeded the statute of limitations and should be dismissed.

According to previous court records, when UST lost its peg to the US dollar in 2021, Jump Trading assisted Terraform Labs in maintaining the UST peg by buying large amounts of UST to support its price, but executives of both parties kept this confidential. Terraform Labs founder Do Kwon had previously been sentenced to 15 years in prison for two counts of fraud.