CryptoMediaClub
Tuesday, February 10, 2026
  • All news
  • Bitcoin
  • Ethereum
  • Altcoins
  • NFT
  • Blockchain
  • Analysis
No Result
View All Result
  • All news
  • Bitcoin
  • Ethereum
  • Altcoins
  • NFT
  • Blockchain
  • Analysis
No Result
View All Result
CryptoMediaClub
No Result
View All Result
Home All news

Terraform Liquidators Allege Jump Trading Helped Fuel Crypto’s Biggest Crash: Report

19.12.2025
A A
0
121
VIEWS
ShareShare

The administrators winding down what is left of Do Kwon’s Terraform Labs have turned on one of crypto’s biggest trading shops, alleging Jump Trading profited from Terra’s surge and helped lay the groundwork for its collapse.

Todd Snyder, the court-appointed plan administrator for the Terraform bankruptcy, filed a lawsuit in federal court in Illinois seeking $4B in damages from Jump Trading, co-founder William DiSomma, and former Jump Crypto president Kanav Kariya, the Wall Street Journal reported Thursday.

“Jump Trading actively exploited the Terraform Labs ecosystem through manipulation, concealment, and self-dealing that enriched Jump while financially devastating thousands of unsuspecting investors,” Snyder said in a statement.

“This action is a necessary step to hold Jump Trading accountable for illegal conduct that directly caused the largest crypto collapse in history.”

The Office of the Terraform Labs Plan Administrator has filed a $4B lawsuit against Jump Trading over its direct role in the collapse of Terraform Labs, seeking to hold Jump to account for enriching itself through illicit market manipulation, self-dealing, and misuse of assets.…

— Terra 🌍 Powered by LUNA 🌕 (@terra_money) December 19, 2025

Terra’s Death Spiral And The Contagion That Followed

Terraform’s collapse still hangs over the market. TerraUSD, known as UST, was billed as a stablecoin that would hold $1 through an algorithm tied to its sister token, Luna, known as LUNA. When UST broke its peg in May 2022, the mechanism unraveled and both tokens spiraled toward near zero in days.

The wipeout erased about $40B in value and rippled across the industry, squeezing lenders, funds, and exchanges that had treated UST yields and Luna liquidity as deep and durable.

Three Arrows Capital was among the first major casualties, with later failures piling up as confidence and collateral evaporated.

Terraform filed for bankruptcy in Jan. 2024, and public filings show the estate has recovered about $300M so far for creditors as it unwinds what remains.

Claims Of Peg Support And Profits From Terra’s Fall

Snyder’s complaint says Jump entered a secret arrangement to support TerraUSD’s peg before the final break and later walked away from the wreckage with outsized gains.

Regulators have previously pointed to Jump’s trading in Luna, with the SEC saying in court filings that Jump made about $1B in profit by selling the token.

The suit lands after a bruising year for Terraform’s former leadership. The company and Kwon agreed to a roughly $4.5B settlement with the SEC in 2024 following a jury verdict on securities fraud claims.
Kwon, once a celebrity founder who mocked critics as UST scaled, pleaded guilty in August 2025 and a New York federal judge sentenced him to 15 years in prison last week.

The post Terraform Liquidators Allege Jump Trading Helped Fuel Crypto’s Biggest Crash: Report appeared first on Cryptonews.

Share9Tweet6ShareSharePin2

Related Posts

Post-Quantum qONE Hyperliquid Token Sells Out in 24 Hours, Raises $950,000   
All news

Post-Quantum qONE Hyperliquid Token Sells Out in 24 Hours, Raises $950,000   

10.02.2026
0

If the record sell-out of the qONE token presale is anything to go by, the interest in Post-Quantum Cryptography (PQC)...

Read moreDetails
Is $qONE the Best Crypto to Buy After its Presale Sold Out in Less Than 24 Hours?

Is $qONE the Best Crypto to Buy After its Presale Sold Out in Less Than 24 Hours?

10.02.2026
XRP Price Prediction: 13-Year-Old Article Proves XRP Was Always Better Than Bitcoin – Why Was It Hidden?

XRP Price Prediction: 13-Year-Old Article Proves XRP Was Always Better Than Bitcoin – Why Was It Hidden?

10.02.2026
Best Crypto to Buy Now February 9 – XRP, Bitcoin, Ethereum

Best Crypto to Buy Now February 9 – XRP, Bitcoin, Ethereum

10.02.2026
Solana Price Prediction: SOL Bounces 12% Overnight – But This One Signal Could Ruin Everything

Solana Price Prediction: SOL Bounces 12% Overnight – But This One Signal Could Ruin Everything

10.02.2026
Load More
Next Post
IcomTech Promoter Sentenced to Nearly Six Years in Prison Over Crypto Ponzi Scheme

IcomTech Promoter Sentenced to Nearly Six Years in Prison Over Crypto Ponzi Scheme

0 0 votes
Рейтинг статьи
Subscribe
Notify of
guest
guest
0 комментариев
Oldest
Newest Most Voted
Inline Feedbacks
View all comments

Recommended

XRP and Solana dethrone Bitcoin and Ethereum as institutional favorites in 2025

XRP and Solana dethrone Bitcoin and Ethereum as institutional favorites in 2025

1 month ago
Hundreds of MetaMask wallets drained: What to check before you ‘update’

Hundreds of MetaMask wallets drained: What to check before you ‘update’

1 month ago
Your Phone Can Now Mine Crypto: XRP Mining App Turns Smartphones into Daily Miners

Your Phone Can Now Mine Crypto: XRP Mining App Turns Smartphones into Daily Miners

6 months ago
Hong Kong SFC Unveils 12-Level Roadmap to Strengthen Crypto Sector

Hong Kong SFC Unveils 12-Level Roadmap to Strengthen Crypto Sector

12 months ago

Categories

  • All news
  • Altcoins
  • Analysis
  • Bitcoin
  • Blockchain
  • Ethereum
  • NFT
No Result
View All Result

Highlights

Is $qONE the Best Crypto to Buy After its Presale Sold Out in Less Than 24 Hours?

XRP Price Prediction: 13-Year-Old Article Proves XRP Was Always Better Than Bitcoin – Why Was It Hidden?

Best Crypto to Buy Now February 9 – XRP, Bitcoin, Ethereum

Solana Price Prediction: SOL Bounces 12% Overnight – But This One Signal Could Ruin Everything

China’s Alibaba AI Predicts the Price of XRP, Solana and Bitcoin By the End of 2026

Bitcoin Price Prediction: Satoshi’s Wallet Just Got $174K in BTC – Is the Creator About to Return?

Trending

Bitcoin failing 7 times to break $71,500 is much more ominous than boring ‘sideways action’
Analysis

Bitcoin failing 7 times to break $71,500 is much more ominous than boring ‘sideways action’

10.02.2026
0

Bitcoin has a habit of turning certain numbers into places. A number becomes a shared memory, a...

The real drivers of XRP supply: A guide to understand Ripple’s monthly releases and what matters

The real drivers of XRP supply: A guide to understand Ripple’s monthly releases and what matters

10.02.2026
Post-Quantum qONE Hyperliquid Token Sells Out in 24 Hours, Raises $950,000   

Post-Quantum qONE Hyperliquid Token Sells Out in 24 Hours, Raises $950,000   

10.02.2026
Is $qONE the Best Crypto to Buy After its Presale Sold Out in Less Than 24 Hours?

Is $qONE the Best Crypto to Buy After its Presale Sold Out in Less Than 24 Hours?

10.02.2026
XRP Price Prediction: 13-Year-Old Article Proves XRP Was Always Better Than Bitcoin – Why Was It Hidden?

XRP Price Prediction: 13-Year-Old Article Proves XRP Was Always Better Than Bitcoin – Why Was It Hidden?

10.02.2026
  • All news
  • Altcoins
  • Bitcoin
  • Blockchain
  • Ethereum
  • NFT
  • Analysis
Editor: cryptomediaclub.com@gmail.com
Advertising: digestmediaholding@gmail.com

Disclaimer: Information found on CryptoMediaClub is those of writers quoted. It does not represent the opinions of CryptoMediaClub on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoMediaClub covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.

© 2023 Crypto News. All Rights Reserved

No Result
View All Result
  • All news
  • Bitcoin
  • Ethereum
  • Altcoins
  • NFT
  • Blockchain
  • Analysis

Disclaimer: Information found on CryptoMediaClub is those of writers quoted. It does not represent the opinions of CryptoMediaClub on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoMediaClub covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.

© 2023 Crypto News. All Rights Reserved

wpDiscuz