Terraform Labs Sues Jump Trading for $4 Billion Over Alleged Terra Ecosystem Manipulation

Coinotag

Release Time:12/19/2025 10:24:52

Terraform Labs has filed a $4 billion lawsuit against Jump Trading, alleging manipulation of the Terra ecosystem. The case, led by the bankruptcy administrator, claims Jump secured discounted Luna token deals while TerraUSD maintained its dollar peg. The firm is accused of hiding instability and making undisclosed Bitcoin trades. The lawsuit aims to recover losses for creditors after the 2022 crash wiped out $50 billion. Fear and greed index readings at the time showed extreme panic among traders. Trading volume spiked during the collapse as investors rushed to exit.

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