The administrator alleged Thursday in the U.S. District Court for the Northern District of Illinois, Eastern Division, that Jump had entered into a secret deal to prop up TerraUSD before the coin’s collapse, and later emerged from Terraform’s collapse with billions of dollars in gains. The SEC has previously said in court filings that Jump made about $1 billion in profit by selling Luna.
“Jump Trading actively exploited the Terraform Labs ecosystem through manipulation, concealment, and self-dealing that enriched Jump while financially devastating thousands of unsuspecting investors,” Snyder said in a statement. “This action is a necessary step to hold Jump Trading accountable for illegal conduct that directly caused the largest crypto collapse in history.”
Source: Jump Accused of Contributing to Collapse of Terraform, Do Kwon’s Crypto Empire – WSJ