Jump Trading Calls Terraform Labs' $44 Billion Lawsuit a "Shifting of Blame"

Odaily News Jump Trading responded on Monday to the lawsuit filed by Todd Snyder, the head of the Terraform Labs bankruptcy trust. Snyder sued Jump Trading, several of its subsidiaries, and two executives in December last year, accusing them of market manipulation, defrauding investors, and self-dealing, seeking $4 billion in damages.

In its response, Jump Trading described the lawsuit as a "transparent attempt" by Snyder to evade the $4.4 billion fine imposed by the U.S. Securities and Exchange Commission (SEC) on Terraform Labs in 2024. It stated that Snyder "fabricated a series of allegations designed to shift Terraform's liability to the SEC and its creditors onto the defendants." Jump Trading also pointed out that the lawsuit lacks key details, fails to specify the actions of each defendant, does not identify the location of the alleged violations, and is time-barred, and therefore should be dismissed.

According to previous court records, when UST depegged from the U.S. dollar in 2021, Jump Trading assisted Terraform Labs in maintaining UST's peg by purchasing large amounts of UST to support its price, but executives from both sides kept this confidential. Terraform Labs founder Do Kwon was previously sentenced to 15 years in prison for two counts of fraud.