Jump Trading is sued by Terraform, seeking compensation of 4 billion USD
According to WSJ, the liquidation unit of Terraform Labs has sued Jump Trading for signing a secret agreement to support the price of UST when it lost its peg. This hid flaws in the algorithmic mechanism and pocketed billions of USD from the collapse of Terra.
Previously, the SEC also accused Jump and Terraform of misleading investors about the sustainability of the UST stabilization mechanism. However, at the end of last year, Jump's subsidiary paid 123 million USD to settle this matter with the SEC.
In response, Jump Trading denied all allegations and claimed they were being used as a scapegoat for the mistakes of Terraform and Do Kwon.
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