Jump Trading calls Terraform Labs lawsuit an attempt to offload SEC fine

Crypto market maker Jump Trading has responded to a fraud lawsuit from Terraform Labs, calling it a "desperate attempt" to offload its own fines, DL News reported. Todd Snyder, who is managing the Terraform Labs bankruptcy proceedings, filed a $4 billion lawsuit last December against Jump Trading, its subsidiary, and its executives. The suit alleges they deceived investors and profited illicitly during the Terra collapse. In response, Jump Trading argued the lawsuit is an attempt by Terraform Labs to evade responsibility for a $4.4 billion fine levied by the U.S. SEC in 2024. The firm also claimed the suit lacks specific details on violations or their locations and that the statute of limitations has expired, requesting the court to dismiss the case. Snyder has also drawn market attention for filing a separate lawsuit against market maker Jane Street.