Jump Trading Says Terraform Labs Trustee's $4.4 Billion Suit Tries to "Shift Liability"

Jump Trading has pushed back against a lawsuit brought by Todd Snyder, the bankruptcy trustee for Terraform Labs, calling it an effort to offload Terraform's legal exposure. Snyder filed the complaint in December, naming Jump Trading, several affiliates and two executives. The suit alleges market manipulation, investor fraud and self-dealing, and seeks $4 billion in damages. In a Monday filing, Jump Trading said the case is a "transparent attempt" to sidestep the $4.4 billion penalty the U.S. Securities and Exchange Commission imposed on Terraform Labs in 2024. Jump argued Snyder "fabricated a series of allegations" to shift Terraform's liabilities to the SEC and Terraform's creditors onto the defendants. Jump also said the complaint lacks key specifics, does not spell out each defendant's alleged conduct, fails to identify where the purported violations took place, and is barred by the statute of limitations, warranting dismissal. Court records previously showed that when UST broke from its dollar peg in 2021, Jump Trading bought large amounts of UST to support the price and help maintain the peg, actions that executives at both firms allegedly kept confidential. Terraform founder Do Kwon has been sentenced to 15 years in prison on two fraud counts.