Jump Trading Efforts To Move Terra Lawsuit To California

Key Points:

• Jump Trading’s meaningful cooperation with Terraform Labs in manipulating the price of failing stablecoin UST is detailed in a complaint filed in an Illinois district court.
• Jump Trading is looking to bring the case back to California.
• The company stated in the most recent petition that the decision to bring the complaint in Illinois was an “effort at forum shopping.”

Jump Trading is requesting that the class action case against the corporation be transferred from Illinois to the Northern District Court of California, stating that this would greatly expedite legal procedures.

The defendants stated in the most recent petition, filed on June 9, that the decision to bring the complaint in Illinois was an “effort at forum shopping,” since the plaintiff, Taewoo Kim, is a New Jersey resident represented by legal firms from New York and California. The practice of picking courts or jurisdictions that allegedly have the most favorable rules or regulations that support the plaintiff’s case is referred to as forum shopping.

“There is no legally compelling connection to Illinois, and nearly all of the relevant witnesses and documents either are located outside Illinois or are just as easily accessed elsewhere,” according to the court filing.

According to the complaint, Jump Trading and its CEO, Kanav Kariya, were engaged in a price manipulation scam involving the famed TerraUSD stablecoin, which resulted in a $1.3 billion windfall for the business.

Jump Trading was an early partner and key financial supporter of Terraform Laboratories, according to the complaint. Jump engaged in various agreements with Terraform and its affiliates between November 2019 and September 2020 to borrow tens of millions of LUNA tokens from Terra and offer market-making services for transactions in LUNA, UST, and aUST.

Moreover, the business and Kariya were charged with breaking Commodities Exchange and Commodity Futures Trading Commission laws, as well as common law unjust enrichment.

Taewoo Kim filed it on May 9, both personally and on behalf of those affected by the Terra/Luna ecological collapse. Selendy Gay and Robbins Geller Rudman & Dowd LLP represent Kim.

The defendants also said that the plaintiffs have a concurrent and related complaint in California that has been pending for over a year and that both matters should be combined or coordinated.

Do Kwon, the project’s originator, was detained in March in Montenegro for allegedly using fraudulent travel papers.

Kwon is believed to be serving home bail in Montenegro after a Montenegrin court accepted his bail petition on June 5. Both Kwon and Terraform Labs’ chief financial officer, Han Chang-Joon, are legally obligated to live in Montenegro at Chang-legal Joon’s abode until an extradition decision is reached. Kwon may face jail time in both the United States and South Korea.

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Harold

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