Leading trading firm Jump Trading is reported to be looking to transfer a lawsuit revolving around Terra implosion from Illinois to California citing convenience and the “interest of justice.” The firm defends its motion on the basis of delay and required functionality of the case.
Lawsuit Revolving Around Terra Collapse
The defendants claimed in a petition filed on June 9 that the primary plaintiff, a resident of New Jersey, was being represented by law firms headquartered in New York and California, and also the decision to file the Terra lawsuit in Illinois was a “attempt at forum shopping.”
Notably, Taewoo Kim, a resident of New Jersey, himself and on behalf of those affected by the implosion of the Terra ecosystem, first filed the complaint on May 9.
Jump Trading Involved in Price-Rigging?
The lawsuit claims that Jump Trading and its CEO, Kanav Kariya, engaged in a price-rigging conspiracy involving the TerraUSD stablecoin that brought the business a profit of $1.3 billion. As per the lawsuit:
“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.”
Furthermore, the defendants claimed that “this case is not the first — or even second or third — to be filed on these facts. Rather, multiple lead plaintiffs have been litigating these exact same events for nearly a year in the Northern District of California in Patterson v. Terraform Labs, Pte. Ltd..”
A Year has Passed Since Terra Implosion
As reported by TheCoinRise, Terraform Labs has tried to dismiss a class-action complaint against the firm on the grounds that the foreign-developed standards it uses are exempt from the U.S. securities laws that are being pointed in the Terra implosion case.
Meanwhile, Do Kwon, a co-founder of Terraform, and Terraform Labs were apparently accused of taking millions out of the business in May. About a year after the Terra LUNA fiasco, which resulted in the loss of $40 billion in investor assets and prompted a crackdown on the cryptocurrency industry, significant withdrawals were also noticed.