Jump Trading rebuts Terraform Labs lawsuit… “An attempt to dodge responsibility”

Jump Trading has pushed back strongly against a lawsuit tied to Terraform Labs.

According to DL News on the 24th (local time), Jump Trading argued that a suit filed by Todd Snyder, who is overseeing Terraform Labs’ liquidation, is “an attempt to shift blame.”

Earlier, Snyder filed a damages suit of roughly $4 billion against Jump Trading, certain affiliates and executives, citing market manipulation, investor deception and conflicts of interest.

Jump Trading countered that the lawsuit is an effort to avoid the $4.4 billion penalty imposed in 2024 by the U.S. Securities and Exchange Commission (SEC).

In court filings, Jump Trading said the claims are “constructed to transfer Terraform’s responsibility to the defendants” and added that there is “insufficient proof of specific conduct.”

Terraform Labs, the company behind the Terra blockchain and the UST stablecoin and Luna (LUNA), triggered about $40 billion in investor losses during its 2022 collapse.

UST’s dollar peg broke down in 2021, sparking market turmoil, which later fed into a chain reaction of market shocks that culminated in FTX’s bankruptcy and a wave of tighter regulation.

Snyder’s side alleged that Jump Trading made large-scale purchases to defend UST’s price and used inside information in the process to reap illicit gains.

Jump Trading, for its part, said the suit lacks specificity and is time-barred, and asked the court to dismiss it.

Separately, Snyder has recently filed another lawsuit against Jane Street and related individuals.