TechFlow news, October 17 — According to Bloomberg, video game developer FractureLabs has filed a lawsuit against prominent cryptocurrency market maker Jump Trading in U.S. federal court in Chicago, accusing it of fraud and deception through manipulation of the DIO token price.
FractureLabs had originally planned to raise funds in 2021 through an initial listing of its DIO token on Huobi (now renamed HTX). The company hired Jump Trading as the market maker for DIO, loaned 10 million tokens to its subsidiary, and sent 6 million tokens to HTX for the offering.
The lawsuit alleges that Jump Trading systematically liquidated its DIO holdings, driving the token price down to approximately $0.005 and generating millions of dollars in profits for itself. Subsequently, Jump repurchased about $53,000 worth of tokens at steep discounts, returned them to FractureLabs, and then terminated the market-making agreement.
In response, HTX stated it is committed to ensuring legal and compliant operations. As the matter is now under legal proceedings and HTX is not a defendant, the company cannot provide further comments at this time.
