Gate News: On March 25, Jump Trading responded to a lawsuit filed by Todd Snyder, the trustee overseeing the liquidation of Terraform Labs, in December of last year. The lawsuit claims that Terraform’s actions were an attempt to shift responsibility to avoid a $4.4 billion fine from the U.S. Securities and Exchange Commission (SEC), and requests the court to dismiss the charges. Todd Snyder alleges that Jump Trading and its related entities, along with two executives, engaged in market manipulation, investor fraud, and self-trading, seeking damages of $4 billion. The lawsuit 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. In its response, Jump noted that the lawsuit refers to eight related entities collectively as “Jump” without specifying the actions of each defendant; additionally, it did not specify where the violations occurred and claimed the lawsuit is time-barred, requesting dismissal. Regarding background, Terraform Labs and its founder Do Kwon were sued by the SEC in 2023 and were found to have violated regulations in 2024, resulting in fines of $4.4 billion and $204 million, respectively. Do Kwon also pleaded guilty in a criminal case.
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