Jump Trading Sued for $4B Over Terra Collapse Role
The post Jump Trading Sued for $4B Over Terra Collapse Role appeared on BitcoinEthereumNews.com.
Key Notes Terraform Labs’ liquidator, Todd Snyder, is suing Jump Trading for $4 billion. The lawsuit alleges Jump Trading made over $1.28 billion in profit by manipulating the TerraUSD (UST) stablecoin. Jump is accused of propping up the UST peg in May 2021 in a secret deal that granted it heavily discounted LUNA tokens. Terraform Labs’ court-appointed liquidator, Todd Snyder, has filed a $4 billion lawsuit against Jump Trading, its co-founder William DiSomma, and former president Kanav Kariya. The suit, filed in an Illinois district court, alleges the high-frequency trading firm secretly manipulated the TerraUSD (UST) stablecoin for massive profits before its $40 billion collapse in May 2022. The core of the complaint alleges Jump entered a clandestine agreement to artificially support UST’s price, misleading investors about its stability. The lawsuit claims that when UST first lost its peg in May 2021, Jump Trading covertly bought large amounts of the token to restore its price. This action, the filing argues, was falsely portrayed by Terraform Labs as a natural recovery by its algorithm. “This action is a necessary step to hold Jump Trading accountable for illegal conduct that directly caused the largest crypto collapse in history,” Snyder stated, according to reports. The Office of the Terraform Labs Plan Administrator has filed a $4B lawsuit against Jump Trading over its direct role in the collapse of Terraform Labs, seeking to hold Jump to account for enriching itself through illicit market manipulation, self-dealing, and misuse of assets.… — Terra 🌍 Powered by LUNA 🌕 (@terra_money) December 19, 2025 In exchange for the intervention, Terraform Labs allegedly modified a prior agreement, allowing Jump to purchase LUNA LUNA $0.11 24h volatility: 2.3% Market cap: $75.76 M Vol. 24h: $76.32 M tokens at a staggering 99% discount. The suit claims Jump acquired LUNA for as…
