Post
Ismeidy
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⚖️ EXPLOSIVE ACCUSATION
#TerraformLabs sues Jump Trading for the collapse of $40 billion
The bankruptcy administrator demands $4 billion in damages, accusing the firm of "manipulation, concealment, and illegal profits" in a secret pact that sunk thousands of investors.
The "secret agreement" that turned costly
What were once rumors in governance forums is now a formal lawsuit in an Illinois court. Todd Snyder, the court-appointed liquidator of Terraform Labs, has gone after Jump Trading, its co-founder William DiSomma, and former president Kanav Kariya, labeling them as key players in the disaster that wiped out $40 billion from the market.
The "Under-the-Table Agreement": According to the lawsuit, Jump Trading maintained a secret agreement to artificially support the value of the UST stablecoin before its final collapse. While the ecosystem bled out, Jump allegedly used this manipulation to extract liquidity.
Profits amid chaos: It is alleged that while thousands of retail investors lost their savings, Jump Trading emerged from the crisis with extraordinary profits. Documents from #SEC suggest that the firm made nearly $1 billion just from the sale of #LUNA
A message to the industry: Snyder describes Jump's conduct as an act of "influence peddling and active manipulation". This lawsuit seeks to set a historic precedent: that high-frequency trading firms take responsibility for the collapse of DeFi protocols.
#Terra #TerraLabs $LUNA
{spot}(LUNAUSDT)
$LUNC
{spot}(LUNCUSDT)
#TerraformLabs sues Jump Trading for the collapse of $40 billion
The bankruptcy administrator demands $4 billion in damages, accusing the firm of "manipulation, concealment, and illegal profits" in a secret pact that sunk thousands of investors.
The "secret agreement" that turned costly
What were once rumors in governance forums is now a formal lawsuit in an Illinois court. Todd Snyder, the court-appointed liquidator of Terraform Labs, has gone after Jump Trading, its co-founder William DiSomma, and former president Kanav Kariya, labeling them as key players in the disaster that wiped out $40 billion from the market.
The "Under-the-Table Agreement": According to the lawsuit, Jump Trading maintained a secret agreement to artificially support the value of the UST stablecoin before its final collapse. While the ecosystem bled out, Jump allegedly used this manipulation to extract liquidity.
Profits amid chaos: It is alleged that while thousands of retail investors lost their savings, Jump Trading emerged from the crisis with extraordinary profits. Documents from #SEC suggest that the firm made nearly $1 billion just from the sale of #LUNA
A message to the industry: Snyder describes Jump's conduct as an act of "influence peddling and active manipulation". This lawsuit seeks to set a historic precedent: that high-frequency trading firms take responsibility for the collapse of DeFi protocols.
#Terra #TerraLabs $LUNA
{spot}(LUNAUSDT)
$LUNC
{spot}(LUNCUSDT)
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