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Years after the Terra (LUNA) crash that shook Bitcoin (BTC) and altcoins, it continues to be a topic of discussion.
In the latest development, Terraform Labs has filed a $4 billion lawsuit against Jump Trading.
According to the Wall Street Journal, Terraform Labs’ bankruptcy administrator has filed a lawsuit against cryptocurrency market maker Jump Trading, seeking a total of $4 billion in damages.
According to the complaint, Terraform Labs Jump Trading allegedly secretly manipulated the Terra ecosystem and profited from its collapse.
The lawsuit alleges that Jump Trading and its executives, William DiSomma and Kanav Kariya, profited unfairly and contributed to Terraform’s collapse in 2022.
The lawsuit alleges that Jump Trading made large-scale purchases of UST between 2021 and 2022 during its period of decline from a fixed rate, with the aim of artificially boosting the price and profiting approximately $1 billion from these activities. According to the liquidator, these transactions were not only profit-driven but also contributed to the ecosystem becoming unsustainable and collapsing.
Jump Trading denied the allegations, arguing that the lawsuit was an attempt to deflect blame and deflect attention from Terraform’s failures and culpability. The company also added that they would strongly defend themselves in court.
*This is not investment advice.