Jump Trading Calls Terraform Labs' $4.4 Billion Lawsuit a "Shifting of Responsibility"

SmartContractAuditor · 2026-03-25T01:21:33+00:00

Jump Trading has responded to a lawsuit filed by Terraform Labs bankruptcy trustee Todd Snyder, arguing that his allegations of market manipulation and fraud are an attempt to evade a massive SEC fine, and that the claims lack key details, are beyond the statute of limitations, and should be dismissed.

SmartContractAuditor

2026-03-25 01:21:33

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Odaily Planet Daily reports that Jump Trading responded on Monday to a lawsuit filed by Todd Snyder, the trustee of Terraform Labs’ bankruptcy estate. Snyder filed the suit last December, accusing Jump Trading and its subsidiaries and two executives of market manipulation, investor fraud, and self-trading, seeking $4 billion in damages.

In its response, Jump Trading described the lawsuit as Snyder’s “transparent attempt” to evade a $4.4 billion fine imposed by the U.S. Securities and Exchange Commission (SEC) on Terraform Labs in 2024. The firm also stated that Snyder “fabricated a series of allegations aimed at shifting the responsibility of Terraform to the SEC and its creditors onto the defendants.” Jump Trading further pointed out that the lawsuit lacks key details, fails to specify the conduct of each defendant, does not identify where the alleged violations occurred, and is time-barred, and should be dismissed.

According to previous court records, during the 2021 UST de-pegging event, Jump Trading assisted Terraform Labs in maintaining the UST peg by purchasing large amounts of UST to support its price, though both parties’ executives kept this confidential. Terraform Labs founder Do Kwon has previously been sentenced to 15 years in prison for two counts of fraud.

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