Jump Trading, an algorithmic and high-frequency trading firm, is pursuing the relocation of a class action lawsuit from Illinois to a Northern district court in California. The firm argues that this move would expedite the legal process significantly.
Taewoo Kim’s lawsuit, filed on May 9, accuses Jump Trading and its CEO Kanav Kariya of orchestrating a price manipulation scheme tied to TerraUSD, leading to a claimed $1.3 billion in profits, impacting the collapsed Terra/Luna ecosystem.
Defendants claim “forum shopping” in a class action lawsuit against Jump Trading as they argue that the plaintiff’s lack of connection to Illinois and the presence of witnesses and documents elsewhere warrant a change in jurisdiction.
Furthermore, the defendants note that the plaintiffs have an ongoing related suit in California that has been in progress for over a year. They suggest that both cases should be consolidated or coordinated.
The collapse of the TerraUSD/LUNA project in May 2022 caused significant market losses. The project’s founder, Do Kwon, was arrested in March in Montenegro for alleged use of false travel documents. He faces potential prison time in both the U.S. and South Korea.
The legal battle surrounding the allegations of price manipulation and violations of regulations will continue to unfold as the court determines whether to transfer the case and consolidate related lawsuits.
Also Read: Terra Co-Founder’s Letter Sparks Montenegro’s Political Fire
