In May 2022, the notorious collapse of the Terra ecosystem had profound repercussions on the trading firm, leading to an investor lawsuit. The lawsuit claimed that Jump Crypto had garnered $1.3 billion in profits through collusion with Terra founder Do Kwon, manipulating the price of Terra’s UST to sustain the algorithmic stablecoin’s peg to the U.S. dollar. Furthermore, the allegations stated that Jump Crypto had received LUNA tokens at significant discounts, occasionally up to 99% below market value, as a reward for supporting UST and the Terra ecosystem.
Jump Cryptos President Resigns