Jump Trading Calls Terraform Labs' $4.4 Billion Lawsuit "Shifting Responsibility"

2026-03-25 02:12:59

ChainCatcher News, Jump Trading responded on Monday to a lawsuit filed by Todd Snyder, the bankruptcy trustee of Terraform Labs. Snyder filed suit last December against Jump Trading, its subsidiaries, and two executives, accusing them of market manipulation, investor fraud, and self-trading, seeking $4 billion in damages.

In its response, Jump Trading called the lawsuit a “transparent attempt” by Snyder to evade a $4.4 billion fine imposed by the U.S. Securities and Exchange Commission (SEC) in 2024 on Terraform Labs. The firm also stated that Snyder “fabricated a series of allegations aimed at shifting the responsibility of Terraform to the SEC and its creditors onto the defendants.” Jump Trading further pointed out that the lawsuit lacks key details, fails to specify the conduct of each defendant, does not identify where the alleged violations occurred, and is time-barred, and should be dismissed.

According to previous court records, during the 2021 UST de-pegging event, Jump Trading assisted Terraform Labs in maintaining the UST peg by purchasing large amounts of UST to support its price, though both parties’ executives kept this confidential. Terraform Labs founder Do Kwon has previously been sentenced to 15 years in prison on two counts of fraud.

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