A class action lawsuit has been filed against Jump Trading, accusing the firm of artificially inflating the prices of UST and aUST tokens. The lawsuit, which was filed in the United States District Court for the Northern District of Illinois, alleges that Jump Trading purchased large quantities of UST and aUST tokens in order to manipulate their prices and mislead investors.
The lawsuit alleges that Jump Trading’s actions caused the prices of UST and aUST to rise artificially, which in turn caused investors to purchase these tokens at inflated prices. As a result of Jump Trading’s actions, investors suffered significant financial losses when the prices of UST and aUST eventually crashed.
The lawsuit seeks damages for investors who purchased UST or aUST tokens between May 23, 2021 and May 31, 2022. The lawsuit also seeks an injunction to prevent Jump Trading from engaging in similar conduct in the future.
This is not the first time that Jump Trading has been accused of market manipulation. In 2017, the firm was fined $7 million by the Commodity Futures Trading Commission (CFTC) for spoofing the market for Bitcoin futures contracts.
The lawsuit against Jump Trading is the latest development in the ongoing saga of the TerraUSD (UST) stablecoin collapse. UST is a cryptocurrency that is pegged to the US dollar. However, in May 2022, UST lost its peg and collapsed in value. The collapse of UST caused widespread losses for investors and shook the confidence of the cryptocurrency market.
The lawsuit against Jump Trading is a significant development in the UST collapse saga. If the lawsuit is successful, it could result in significant damages for investors and could also lead to regulatory scrutiny of Jump Trading.