The administrator overseeing the wind-down of Terraform Labs has launched a major legal offensive, centering on a high-profile Jump trading lawsuit tied to the project’s 2022 implosion.
Administrator targets Jump Trading with multibillion-dollar claim
The Office of the Terraform Labs Plan Administrator has filed a lawsuit seeking $4B in damages from Jump Trading, a Chicago-based trading firm. According to a statement published on X on Friday, the claim focuses on Jump’s alleged role in the spectacular collapse of Terraform Labs in 2022. Moreover, the filing aims to recover what the administrator describes as unlawful profits.
The administrator alleges that Jump Trading not only benefited financially from Terraform’s unraveling, but also helped accelerate the downfall through improper conduct. However, detailed court filings have not yet been fully disclosed to the public, and the case is expected to unfold over an extended period. The action places fresh legal pressure on entities linked to Terraform Labs and its co-founder Do Kwon.
Allegations of illicit trading and misuse of assets
In the public statement, the plan administrator accuses Jump Trading of engaging in “illicit market manipulation, self-dealing, and misuse of assets” around the time of the Terraform ecosystem’s failure. That said, these allegations remain to be tested in court, and no liability has been formally established.
The administrator is attempting to show that Jump enriched itself improperly while ordinary investors suffered steep losses.
The administrator characterizes the case as a four billion dollar suit that seeks to “hold Jump to account” for its alleged conduct during the crisis.
The statement frames the complaint as part of a broader effort to obtain restitution for parties harmed by Terraform’s collapse. Moreover, the language points to a wider narrative of crypto market manipulation allegations involving sophisticated trading firms.
Context of Terraform Labs’ collapse and ongoing litigation
The downfall of Terraform Labs in 2022 triggered a chain reaction across digital asset markets and prompted investigations in multiple jurisdictions. Since then, regulators and private plaintiffs have pursued various legal avenues related to Terraform’s products and governance.
However, the new filing significantly expands the focus by targeting Jump Trading with a direct claim of substantial size.
With this move, the administrator overseeing Terraform’s wind-down adds another legal front to the already complex web of enforcement actions and lawsuits.
The Jump trading lawsuit will likely draw close attention from the broader crypto industry, as it touches on alleged market manipulation, internal dealings, and asset handling practices during one of the market’s most dramatic failures.
In summary, the plan administrator’s Jump trading crypto lawsuit over Terraform Labs’ 2022 collapse seeks up to $4B in damages and accuses the Chicago firm of illicit market manipulation, self-dealing, and misuse of assets, setting the stage for a high-stakes legal battle with potential implications for the wider digital asset sector.
Source: https://en.cryptonomist.ch/2025/12/19/jump-trading-lawsuit-terraform/
