The post Jump Trading Lawsuit Sparks Allegations of Token Price Manipulation appeared on BitcoinEthereumNews.com.

Key Points: FractureLabs accused Jump of fraud and price manipulation during the 2021 initial offering of its DIO token, which is used in the Decimated game. In the Jump Trading lawsuit, FractureLabs claimed the market maker inflated DIO’s price and sold off tokens for profit. According to Bloomberg, FractureLabs, a video-game developer, filed a complaint against Jump Trading, one of the major cryptocurrency industry market makers, accusing the company of fraud and price manipulation related to the DIO token in use for its online game, Decimated. Read more: Crypto Fraud Escape Scammer Flees NYC on $5M Bond Lawsuit Jump Trading Claims The Company Engaged in Pump-and-Dump Scheme Jump Trading lawsuit against the market maker includes price manipulation of a token following its 2021 initial offering on HTX. The complaint said that the defendant, Fracture Labs, hired the services of Jump to control the market for its DIO token following its fundraising. Under the agreement, the game developer advanced Jump’s subsidiary 10 million DIO tokens and subsequently transferred a further 6 million tokens to HTX, which sold them. Following an online promotional campaign by purported “influencers,” the token price jumped to $0.98, putting the value of Jump’s hoard of the DIO token at $9.8 million. The Jump Trading lawsuit also claims that after the company sold its DIO, the token crashed down to a low of less than half a cent. Jump then bought the token at the low price and returned the tokens to FractureLabs, drawing out of its agreement to be market maker of the token. On its part, FractureLabs accuses Jump of a “pump and dump” scheme, alleging the firm intentionally manipulated the token’s value to profit. HTX Withholds $1.5 Million Amid Dispute Over Token Price Collapse The Jump Trading lawsuit alleges that the company made misrepresentations about…

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Filed under: News - @ October 17, 2024 3:15 am