Jump Trading’s Legal Maneuver
In a surprising turn of events, algorithmic and high-frequency trading firm Jump Trading is trying to shift its legal battle from the land of deep-dish pizza to the sunsets of Northern California. Why? The firm believes this move will speed up the sluggish legal proceedings surrounding a class-action lawsuit regarding the alleged manipulation of the TerraUSD stablecoin.
Details of the Lawsuit
The saga began on May 9 when Taewoo Kim filed a class-action suit, representing others affected by the disastrous collapse of the Terra/Luna ecosystem. Legal heavyweights from Selendy Gay and Robbins Geller Rudman & Dowd LLP joined the fray to represent Kim. It’s like calling in the Avengers but with more paperwork and fewer capes.
What’s the Accusation?
The lawsuit accuses Jump Trading and its CEO, Kanav Kariya, of concocting a scheme to tweak TerraUSD’s value, supposedly resulting in a jaw-dropping profit of $1.3 billion for the firm. That’s like finding a gold mine in your backyard, except, you know, filled with legal trouble instead of gold nuggets.
The Argument for a Change of Venue
In its motion to transfer the case, filed on June 9, Jump Trading brought up a term that sounds more appropriate for a board game night than a legal argument: “forum shopping.” According to the defendants, the choice to file the suit in Illinois is more about convenience than legality, given that Kim resides in New Jersey and his lawyers are based in New York and California.
The Bigger Picture
Jump Trading isn’t just aiming for a cozier court environment; they are trying to point out that nearly all involved documents and witnesses are not based in Illinois. Participation in a parallel case ongoing in California is also part of the argument. After all, why not pile on the legal baggage if it can speed things up?
The Fallout from TerraUSD’s Collapse
The Terra/Luna collapse back in May 2022 shook the crypto world to its core, obliterating billions in value. Meanwhile, Do Kwon, the founder behind this cryptocurrency fiasco, is now a fugitive caught in a swirl of legal troubles across both the U.S. and South Korea. Life certainly has a way of catching up with those who stir the pot—as Kwon’s recent bail approval showcases.
