Terraform Labs' court-appointed administrator has filed a $4 billion lawsuit against Jump Trading, William DiSomma, and Kanav Kariya, accusing them of market manipulation during the 2022 collapse of UST and LUNA. The lawsuit, submitted on December 19, 2025, in the U.S. District Court for the Northern District of Illinois, alleges that Jump Trading engaged in undisclosed agreements to stabilize UST, subsequently profiting from discounted tokens.
Jump Trading has denied the allegations, describing the lawsuit as a diversion from issues surrounding Terraform founder Do Kwon. Meanwhile, the crypto market's fear and greed index remains volatile, with trading volumes in stablecoins and altcoins indicating a shift in risk appetite.
Terraform Labs Sues Jump Trading for $4 Billion Over Terra Collapse
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