Jump Trading Responds to Terraform Liquidation Trust Lawsuit, Claims It Aims to Shift $4.4 Billion Fine Liability

DeepFlowTech · 2026-03-25T01:09:38+00:00

Jump Trading has responded to a lawsuit filed by Terraform Labs liquidation trustee Todd Snyder, characterizing it as an attempt to shift responsibility and requesting that the court dismiss it. Todd has accused Jump and its related entities of market manipulation, seeking damages of $4 billion. Jump claims the lawsuit lacks specificity and is barred by the statute of limitations.

DeepFlowTech

2026-03-25 01:09:38

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Deep Tide TechFlow News, March 25 — According to DL News, Jump Trading responded this Monday to a lawsuit filed by Terraform Labs’ liquidation trust chief Todd Snyder in December of last year. The firm claims the lawsuit is Terraform’s attempt to shift responsibility to avoid a $4.4 billion penalty from the U.S. Securities and Exchange Commission (SEC), and has asked the court to dismiss the charges.

In the lawsuit, Todd Snyder accuses Jump Trading and several related entities, along with two executives, of market manipulation, investor fraud, and self-trading, seeking damages of $4 billion. The complaint states that during the 2021 UST de-pegging, Jump secretly bought large amounts of UST to maintain its peg, while deliberately concealing these actions to protect its investments in LUNA tokens.

Jump’s response document states that the lawsuit refers to eight different related entities collectively as “Jump,” without specifying the specific actions of each defendant. Additionally, the lawsuit does not clearly identify where the violations occurred, and since the statute of limitations has expired, it should be dismissed.

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