Jump Trading has filed a motion to dismiss a lawsuit brought by Todd Snyder, the trustee managing Terraform Labs' liquidation, labeling the suit as an attempt to deflect a $4.4 billion SEC penalty. The lawsuit accuses Jump Trading and its affiliates of market manipulation and fraud during the 2021 UST depegging, seeking $4 billion in damages. Jump Trading argues the claims are vague, improperly group multiple entities, and are time-barred.
The lawsuit alleges Jump Trading secretly bought UST to maintain its peg, concealing these actions to protect LUNA investments. Jump Trading contends the complaint lacks specificity regarding the conduct of each entity and the location of alleged violations. Terraform Labs and founder Do Kwon were previously fined by the SEC and Kwon pleaded guilty in a separate case.
Jump Trading Seeks Dismissal of Terraform Lawsuit, Denies Allegations
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