Terraform Admin Sues Jump Trading for $4B Over Terra Collapse
The administrator overseeing the wreckage of the Terra ecosystem has sued quantitative trading firm Jump Trading for $4 billion, alleging secret manipulation and profiteering from events that led to the 2022 collapse. According to reporting by The Wall Street Journal and Bloomberg, the complaint — filed in December — claims Jump used undisclosed strategies to benefit as Terra’s native tokens fell, harming retail and institutional holders.
The suit underscores ongoing tensions over responsibility and market conduct after the collapse that erased roughly $40 billion in investor value and left LUNA and LUNC holders reeling. If sustained, the litigation could heighten regulatory scrutiny on high-frequency and proprietary trading firms and influence how exchanges, liquidity providers, and auditors are held to account. Market participants and policymakers will be watching the case for signals about accountability in crypto markets.