Terraform Labs Seeks $4B Damages from Jump Trading Over Terra Collapse
Liquidators for Terraform Labs have launched a $4 billion lawsuit against Jump Trading and its executives, alleging their actions contributed to the 2022 collapse of the Terra ecosystem. The court-appointed administrator claims proprietary trading strategies exacerbated the stablecoin's downfall.
The legal action targets both the firm and individual decision-makers, marking one of the largest post-mortem claims in crypto history. Observers note the case may set precedents for market maker liability during ecosystem failures.