Jump Trading calls Terraform Labs' $4.4 billion lawsuit a "shift of responsibility."

Jump Trading responded on Monday to the lawsuit filed by Todd Snyder, the bankruptcy trustee for Terraform Labs. Snyder sued Jump Trading and several of its subsidiaries and two executives last December, accusing them of market manipulation, defrauding investors, and self-dealing, seeking $4 billion in damages.

In its response, Jump Trading stated that the lawsuit is Snyder's "transparent attempt" to evade the $4.4 billion fine imposed on Terraform Labs by the U.S. Securities and Exchange Commission (SEC) in 2024, and claimed that Snyder "fabricated a series of allegations aimed at shifting Terraform's responsibility to the SEC and its creditors onto the defendants." Jump Trading also pointed out that the lawsuit lacks key details, fails to specify the actions of each defendant, does not indicate where the alleged violations occurred, and is beyond the statute of limitations, warranting dismissal.

According to previous court records, when UST depegged from the dollar in 2021, Jump Trading assisted Terraform Labs in maintaining the UST peg by buying large amounts of UST to support its price, but executives from both sides kept this confidential. Terraform Labs founder Do Kwon has previously been sentenced to 15 years in prison for two counts of fraud.