The high frequency and algorithmic trading firm Jump Trading is seeking to have the class action lawsuit against the company moved from Illinois to a court in Northern California, claiming that doing so would significantly expedite court proceedings.
The lawsuit was initially filed on May 9 by Taewoo Kim, individually and on behalf of others affected by the collapse of the Terra/Luna ecosystem. Kim is represented by Selendy Gay and Robbins Geller Rudman & Dowd LLP.
Jump Trading embroiled in controversy as lawsuit claims it manipulated TerraUSD’s value. Accusations of violating regulations and unfair enrichment put the company under the legal microscope.
— Cointelegraph (@Cointelegraph) May 14, 2023
Jump Trading is embroiled in controversy over a lawsuit that claims it manipulated the value of TerraUSD. The accusations of violation of the regulations and unjust enrichment put the company under the legal microscope.
The lawsuit alleges that Jump Trading and its CEO, Kanav Kariya, engaged in a price manipulation scheme related to the infamous TerraUSD stablecoin, which allegedly brought the company earnings of USD 1.3 billion.
Besides, the company and Kariya were charged with violating the rules of the Commodity Exchange and Commodity Futures Trading Commission and common law unjust enrichment.
In the last motion, presented on June 9, the defendants argued that the choice to sue in Illinois was an “attempted forum shopping” since the lead plaintiff is a New Jersey resident represented by New York and California law firms.
The term “Forum shopping” refers to the practice of selecting courts or jurisdictions that are supposed to have the most favorable rules or laws supporting the claimant’s position.
“There is no compelling legal connection to Illinois, and nearly all relevant witnesses and documents are located outside of Illinois or readily accessible elsewhere,” the court document states.
The defendants added that the plaintiffs also have a concurrent and relevant lawsuit that has been ongoing in California for more than a year, and as such, both cases must be consolidated or coordinated.
“This case is not the first – or even the second or the third – that has been filed based on these facts. Rather, Multiple lead plaintiffs have been litigating these very facts for nearly a year in the Northern District of California in Patterson v. Terraform Labs, Pte. Ltd.”, defendants argued, adding:
“This case should be transferred to the Northern District of California for consolidation or coordination with Patterson. […] This action is likely to move faster in the Northern District of California, which is a year ahead.”
Cointelegraph has reached out to the plaintiffs for comment on the situation, and will update the article if they respond.
The TerraUSD/LUNA project collapsed in May 2022, removing billions of dollars from the market.
The founder of the project, Do Kwon, was arrested in Montenegro in March for allegedly using false travel documents. He could have to serve prison terms in both the United States and South Korea.
Korean media reports that for years, Do Kwon had secretly been sponsoring a prominent Montenegrin politician using illegal funds. Two days ago, a Montenegro high court approved Do Kwon’s bail request again, allowing for his release from prison. https://t.co/aNqYkKG70H
—FatMan (@FatManTerra) June 9, 2023
Korean media reports that Do Kwon had secretly sponsored a prominent Montenegrin politician for years using illegal funds. Two days ago, a Montenegrin high court again approved Do Kwon’s request for bail, allowing him to be released from prison.
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