Key Point

• An aggrieved investor filed a lawsuit against Jump Trading for collaborating with Terraform Labs to manipulate the price of UST

The crypto arm of Jump Trading has been caught in an alleged collaboration with Terraform Labs to manipulate the price of UST prior to its collapse in May 2022.

On May 9, a Terra investor called Taewoo Kim, representing aggrieved Terra investors, filed a class action lawsuit against the Chicago-based trading company Jump Trading.

According to the suit, during the depeg of UST token, Jump Trading conspired with Terraform Labs to repeg UST token to $1 by buying 62 million tokens on several cryptocurrency exchanges as an attempt to hide their fraudulent acts; this subsequently confused TerraUSD investors on the stability of UST.

Furthermore, the lawsuit added that Jump Trading is one of the earliest investors of Terra Labs; back in late 2019, several negotiations between the TFL and Jump Trading yielded a series of agreements between the two; part of the deal was to loan 30 million LUNA tokens to Jump Trading in order to allow Jump to provide market-making services for UST and LUNA, and in return, Jump will be allowed to receive LUNA at a discount rate as part of Jump compensations.

Jump eventually sold the tokens and made over $1.2 billion.

“Plaintiff’s allegations are based upon personal knowledge as to himself and his own acts, and upon information and belief as to all other matters based on the investigation conducted by and through Plaintiff’s attorneys, which investigation included, among other things, a review of the whitepaper of the digital assets at issue, press releases, media reports, and other publicly disclosed reports and information about Defendants,” the suit noted.

Ever since the Terra collapse, the CEO has been accused of market manipulations on several occasions, which he has continually denied.

A red notice was issued to him by Interpol, and since then, he’s been a wanted fugitive before he was caught in Montenegro recently while attempting to leave the country using a fake passport; his Montenegro arrest has led to jurisdictions battle between the US and his home country South Korea, either country he ends up in, he’s likely to face up to 40 years in prison.

Be one of the biggest spenders of crypto by joining the ParadiseFamilyVIP, there will be a personal crypto trading expert to teach you how to execute your trade on Binance(spot and futures), Kucoin and Bybit exchanges.

Use PRO20% for your special 20% discount before the promo expires. Click here to see reviews from happy clients.

Join our telegram channels where we share our FREE updates and analysis on coins like BTC, ETH, and other trending altcoins. We also share our FREE secret insights. And also FREE market updates.

•  My Binance Paradise – https://t.me/MCP_binance
•  My KuCoin Paradise – https://t.me/MCP_KuCoin