Terraform Labs estate files $4B lawsuit against Jump Trading

The bankruptcy administrator for Terraform Labs has filed a $4 billion lawsuit against crypto market maker Jump Trading, The Wall Street Journal reported. According to the complaint, Terraform Labs alleges that Jump Trading profited massively and without public disclosure by intervening to defend the price of TerraUSD (UST), claiming these actions contributed to the eventual collapse of the Terra ecosystem. The lawsuit states that between 2021 and 2022, Jump Trading engaged in large-scale purchases of UST during de-pegging events to artificially support its price, allegedly earning approximately $1 billion in profits from these activities.