Terraform’s Bankruptcy Boss Sues Jump Trading for $4B Over Terra Crash
The Terraform Labs bankruptcy administrator is suing Jump Trading for $4 billion, alleging illegal profit from the $40 billion Terra collapse.Summary
Todd Snyder, the court-appointed administrator winding down Terraform Labs, has filed a $4 billion lawsuit against Jump Trading, its co-founder William DiSomma, and President Kanav Kareiya. The suit alleges that Jump Trading actively exploited the Terraform ecosystem through manipulation and concealment, enriching itself while financially devastating investors during the 2022 collapse of TerraUSD (UST) and Luna, which wiped out $40 billion. Snyder stated this action is necessary to hold Jump accountable for illegal conduct directly causing the historic crypto failure. Prior SEC filings suggest Jump Trading profited about $1 billion from selling Luna. Terraform Labs filed for bankruptcy in January 2024 and later settled with the SEC for $4.5 billion, while founder Do Kwon was recently sentenced to 15 years in prison.
(Source：CoinDesk)