Jump Trading Dismisses ₱238.89 billion ($4 billion) Terraform Lawsuit as Liability Dodge
Jump Trading says Terraform Labs' bankruptcy trustee is using a ₱238.89 billion ($4 billion) lawsuit to shift blame for the ₱2.39 trillion ($40 billion) Terra collapse rather than face the company's ₱262.78 billion ($4.4 billion) SEC fine.
Key Takeaway
Jump claims Terraform's trustee is using bankruptcy to shift blame for the $40 billion collapse.
Jump Trading filed a motion to dismiss Todd Snyder's $4 billion lawsuit this week, calling it a transparent attempt to dodge the $4.4 billion SEC fine levied against Terraform Labs in 2024.
The Chicago-based high-speed trading firm said the December lawsuit lacked key details and should be dismissed because it was filed well after the statute of limitations. Jump's lawyers wrote that Snyder concocts claims designed to shift Terraform's liability to defendants. The firm also argued the complaint fails to plead with particularity what any specific defendant did and does not state where any of the alleged violations occurred.
Snyder's lawsuit claims Jump helped prop up TerraUSD's dollar peg in 2021 through secretive deals that let the firm buy millions of LUNA tokens at $0.40 each while the public market price topped $110. A gentleman's agreement between Terraform founder Do Kwon and Jump's crypto head allowed Jump to intervene in the market to defend the peg, according to the complaint. When UST lost its peg in 2021, Jump purchased UST to restore it to $0.90 in exchange for Terraform waiving LUNA vesting requirements on Jump's purchases.
Snyder, who was confirmed to lead the Terraform Labs Wind Down Trust in September 2024, filed the lawsuit after Do Kwon was sentenced to 15 years in prison in December 2025. Kwon pleaded guilty to two counts of fraud and was ordered to pay $204 million by the SEC.
Jump's subsidiary Tai Mo Shan settled with the SEC for $123 million at the end of 2024 over misleading investors about TerraUSD's stability. Snyder also filed a separate lawsuit against Jane Street last month, accusing the high-frequency trading firm of exploiting inside information during Terra's collapse by withdrawing $85 million in TerraUSD from Curve3pool within 10 minutes of Terraform's $150 million withdrawal.
This article was written based on reporting from Dlnews.
