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Terraform Labs' $4B Lawsuit Targets Jump Trading Over Fraud

12/19/2025

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Summary

Story summary

The administrator managing the closure of Do Kwon’s Terraform Labs filed a $4 billion lawsuit against Jump Trading, alleging market manipulation and asset misuse to recover losses for creditors.
Terraform Labs filed for Chapter 11 bankruptcy in January 2023 after TerraUSD lost its dollar peg, triggering about $40 billion in losses.
Do Kwon, the Terraform Labs co-founder, was sentenced to 15 years in prison for fraud related to the collapse.

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Story summary

The administrator managing the closure of Do Kwon’s Terraform Labs filed a $4 billion lawsuit against Jump Trading, alleging market manipulation and asset misuse to recover losses for creditors.
Terraform Labs filed for Chapter 11 bankruptcy in January 2023 after TerraUSD lost its dollar peg, triggering about $40 billion in losses.
Do Kwon, the Terraform Labs co-founder, was sentenced to 15 years in prison for fraud related to the collapse.