The bankruptcy administrator of Terraform Labs has sued Jump Trading for profiting from and contributing to the collapse of TerraUSD (UST) and LUNA, causing $40 billion in investor losses. Founder Do Kwon was sentenced to 15 years in prison and faces additional punishment in South Korea. Terraform Labs filed for Chapter 11 bankruptcy in January 2024 and received court approval to wind down operations in September 2024. The court appointed Todd Snyder as the bankruptcy plan administrator, who sued Jump Trading for market manipulation and misuse of assets, seeking $4 billion in damages. Jump Trading profited nearly $1 billion by selling Luna. Jump Trading plans to defend against the claims, calling the lawsuit a “desperate attempt” to shift blame. TheStreet Roundtable reached out to Jump Trading for a comment with no response yet.

Read more at Yahoo Finance: Chapter 11 bankrupt crypto firm sues Jump Trading