TechFlow News, March 25: According to DL News, Jump Trading responded on Monday to a lawsuit filed in December last year by Todd Snyder, the liquidation trustee of Terraform Labs, calling the suit a “blame-shifting maneuver” by Terraform to evade a $4.4 billion penalty imposed by the U.S. Securities and Exchange Commission (SEC), and requesting that the court dismiss the allegations.
In the lawsuit, Todd Snyder accused Jump Trading and several of its affiliated entities—as well as two executives—of market manipulation, investor fraud, and self-dealing, seeking $4 billion in damages. The complaint alleges that during UST’s de-pegging event in 2021, Jump secretly purchased large quantities of UST to maintain its pegged price while deliberately concealing these actions to protect its investment interests in the LUNA token.
In its response filing, Jump noted that the complaint lumps eight distinct affiliated entities under the single label “Jump,” failing to specify the conduct attributable to each defendant. Furthermore, the complaint does not clearly identify the jurisdiction where the alleged violations occurred and is time-barred, warranting dismissal.
