Jump Trading Seeks Dismissal of Terraform's $4 Billion Lawsuit

Terraform Labs' algorithmic stablecoin UST and its LUNA token collapsed in May 2022, wiping out tens of billions of dollars in market value and prompting enforcement action by the U.S. Securities and Exchange Commission. Terraform later agreed in June 2024 to pay about $4.47 billion in a settlement. Its bankruptcy trustee is now seeking compensation from Jump Trading, which had helped trade UST, putting the allocation of responsibility at the center of the dispute.

As of July 20, 2026, Jump Trading had asked a court to dismiss the Terraform Labs bankruptcy trustee's $4 billion lawsuit, accusing the trustee of trying to shift responsibility for the SEC penalty. Jump argues that the complaint lacks sufficient factual detail, fails to clearly state where the alleged conduct occurred and brings claims that are time-barred. The court's ruling will affect efforts to recover funds stemming from the Terra collapse.