The post Terraform Administrator Sues Jump Trading for $4B Over TerraUSD appeared on BitcoinEthereumNews.com.

The court-appointed administrator overseeing the liquidation of Terraform Labs’ remaining assets has filed a lawsuit against Jump Trading, accusing the high-frequency trading firm of unjust enrichment and of playing a central role in the collapse of the Terra ecosystem. The lawsuit seeks $4 billion in damages and was filed in the U.S. District Court for the Northern District of Illinois, Eastern Division, according to a report by The Wall Street Journal. The case was brought by Todd Snyder, who was appointed to administer Terraform Labs’ bankruptcy plan. Jump Trading, its co-founder William DiSomma, and former Jump Crypto president Kanav Kariya are named as defendants. Alleged secret agreements and discounted Luna purchases According to the complaint, Jump entered into a series of undisclosed agreements with Terraform Labs beginning in 2019. These arrangements allegedly allowed Jump to purchase millions of Luna tokens at prices far below prevailing market rates. In one cited agreement, Jump reportedly received the right to buy Luna at $0.40 per token. At later points, Luna’s market price exceeded $110. The administrator claims these transactions generated billions of dollars in profits for Jump. The lawsuit also describes what it calls a “gentlemen’s agreement” under which Jump allegedly committed to supporting the TerraUSD (UST) peg to the U.S. dollar. The filing claims the agreement was intentionally kept secret to avoid regulatory scrutiny. In May 2021, TerraUSD briefly lost its dollar peg before rapidly recovering. The lawsuit asserts that the rebound was not the result of Terraform’s algorithmic mechanism, as publicly claimed, but instead stemmed from large-scale UST purchases made by Jump. Following the recovery, the complaint alleges that Jump and Terraform falsely represented the event as proof that the algorithm worked as designed. Vesting changes and market sales After identifying weaknesses in TerraUSD’s structure, Jump allegedly negotiated the removal of…

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Filed under: News - @ December 21, 2025 11:25 am