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- 1 Jump Trading requested the court to relocate the class action lawsuit from Illinois to California.
- 2 Jump Trading and its CEO Kariya were also charged with unjust enrichment.
- 3 Do Kwon might have to spend time in jail in both South Korea and the United States.
In a case that was filed on May 9, Jump Trading and its CEO, Kanav Kariya, were accused of participating in a price-rigging conspiracy involving the TerraUSD stablecoin. Jump Trading then requested the court to relocate the class action lawsuit from Illinois to California. According to them, this would speed up the judicial process.
TerraUSD Was Used in a Price-Rigging Conspiracy
Jump Trading requested the court to relocate the class action lawsuit from Illinois to a Northern district court in California. They claimed that doing so would greatly expedite the judicial process.
Taewoo Kim first filed the complaint on May 9. He filed the complaint individually and on behalf of other people harmed by the Terra/Luna ecosystem. Selendy Gay and Robbins Geller Rudman & Dowd LLP are Kim’s legal counsel.
The lawsuit alleges that Jump Trading and Kariya engaged in a price-rigging conspiracy. They used the controversial TerraUSD stablecoin that reportedly netted the business $1.3 Billion in profit.
The company and its Kariya were also charged with unjust enrichment, and with breaking rules set forth by the Commodity Futures Trading Commission.
In their most recent petition submitted on June 9, the defendants claimed that the main plaintiff, a resident of New Jersey, was being represented by law firms based in New York and California. Consequently, they argued that the decision to file the lawsuit in Illinois was an “attempt at forum shopping.”
“Forum shopping” is the practice of choosing courts or countries. Countries or courts are chosen based on which of them have the most advantageous rules or legislation that support the plaintiff’s position.
“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,” the court brief stated.
The defendants added that both actions should be consolidated or coordinated since the plaintiffs have a parallel and related lawsuit pending in California that has been ongoing for more than a year.
“This case was not the first to be filed on these facts, nor was it the second or third. Instead, numerous lead plaintiffs have been litigating these same events in Patterson v. Terraform Labs, Pte. Ltd. in the Northern District of California for almost a year.”
In May 2022, the TerraUSD/LUNA project failed, wiping off billions of dollars from the market. Do Kwon, the project’s founder, was detained in Montenegro in March on suspicion of using forged travel documents. He might have to spend time in jail in both South Korea and the United States.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
