According to Cointelegraph’s report, in the lawsuit filed in the Illinois District Court, Jump Trading and its CEO Kanav Kariya are facing charges of violating US regulations and unlawfully profiting in the amount of 1.28 billion dollars. The plaintiff, Taewoo Kim, accuses Jump Trading and CEO Kanav Kariya of violating the Commodity Exchange Act and regulations of the Commodity Futures Trading Commission (CFTC).
According to the court documents, Jump Trading was the initial partner and main financial supporter of Terraform Labs. Jump had collaborated with Terraform and its affiliated companies to provide market-making services for transactions involving LUNA, UST, and aUST.
$1.28 billion profit
According to the court documents, Terra and Kwon altered their previous agreements with Jump Trading to encourage and reward them for market manipulation. Under these agreements, Jump Trading acquired over 61.4 million LUNA tokens at a discount of over 99% of their current market value, essentially acquiring them for almost free. Subsequently, Jump Trading sold these tokens, making a profit of over 1.28 billion dollars.
Secret plots between Do Kwon and Jump Trading!
Additionally, according to the lawsuit file, in May 2021, the value of UST failed to maintain $1, and Terraform and CEO Do Kwon secretly made plans with Jump Trading to increase the token’s price. These plans involved Jump Trading purchasing over 62 million UST tokens and artificially raising the price of UST to $1.
Subsequently, Bloomberg reported on March 13th that United States prosecutors were investigating conversations in a Telegram chat group involving Jump Trading, Alameda Research, and Jane Street Group regarding TerraUSD’s rescue package.
As a result, the litigation process is still ongoing and the claims regarding Jump Trading have not yet been decided by the court.