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Algorithmic and high-frequency trading firm Jump Trading is seeking to move a class action against the Illinois firm to the Northern District Court of California, arguing that it will significantly expedite the litigation.
The lawsuit was originally filed on May 9 by Taew 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 unjust enrichment put the company under the legal microscope.
— Cointelegraph (@Cointelegraph) May 14, 2023
The lawsuit alleges that Jump Trading and its CEO, Kanav Kariya, were involved in a price manipulation scheme involving the infamous stablecoin TerraUSD, which allegedly netted the company $1.3 billion in profits.
In addition, the firm and Kariya were accused of violating the rules of the Commodity Exchange and the Commodity Futures Trading Commission, as well as common law unjust enrichment.
In the latest petition, filed on June 9, the defendants argued that the decision to file the lawsuit in Illinois was “an attempt to find a forum” because the main plaintiff is a New Jersey resident represented by New York and New York law firms. California.
The term “forum seeking” refers to the practice of selecting courts or jurisdictions that are believed to have the most favorable rules or laws to support a claimant’s position.
“There is no legally binding connection to Illinois, and nearly all relevant witnesses and documents are either located outside of Illinois or are just as readily available elsewhere,” the court document says.
Defendants added that plaintiffs also have a concurrent and related lawsuit that has been ongoing in California for over a year, and therefore both cases must be combined or coordinated.
Related: Binance. US Hires Former SEC Law Enforcement Officer Amid Lawsuit: Report
“This case is not the first, and not even the second or third, initiated on these facts. Rather, several lead plaintiffs litigated over the course of nearly a year over the same events in the Northern District of California in Patterson v. Terraform Labs, Pte. Ltd. ‘, the defendants argued, adding:
“This case should be referred 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 has a year of head start.”
Cointelegraph has reached out to the plaintiffs for comment and will update the article if they respond.
The TerraUSD/LUNA project collapsed in May 2022, taking billions of dollars from the market.
Project founder Do Kwon was arrested in March in Montenegro on suspicion of using fake travel documents. He could potentially end up in jail in both the US 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