Terraform Labs liquidator sues Jump Trading for $4 billion in damages
Terraform Labs' liquidator is suing Jump Trading and executives for $4 billion, alleging they exploited the ecosystem before its collapse.Summary
Todd Snyder, the court-appointed administrator overseeing Terraform Labs' liquidation, has filed a $4 billion lawsuit against Jump Trading, co-founder William DiSomma, and former president Kanav Kariya. The suit seeks damages related to the 2022 collapse of Terraform Labs, which wiped out over $40 billion. Snyder claims Jump "actively exploited" the ecosystem via a secret deal to inflate the TerraUSD stablecoin's value, profiting billions before the implosion. Previous SEC findings detailed that Jump's unit, Tai Mo Shan, bought $20 million of depegged TerraUSD in exchange for early access to Luna tokens, which it sold for a reported $1.28 billion profit. Jump Trading has dismissed the lawsuit as a "desperate attempt" to shift blame, vowing to defend itself vigorously.
(Source：The Block)