FractureLabs, a video-game developer, has <a href="https://www.bloomberg.com/news/articles/2024-10-16/jump-trading-accused-of-pump-and-dump-in-game-developer-s-suit">taken</a> legal action against Jump Trading, one of the leading market makers in the cryptocurrency space. The lawsuit, filed in a U.S. federal court in Chicago, accuses Jump of <a href="https://thecoinrise.com/ripple-cto-debunks-xrp-price-manipulation-rumors/">manipulating the price</a> of DIO tokens, the native cryptocurrency of FractureLabs’ online game “Decimated.” 
According to the complaint, Jump was retained by FractureLabs as a market maker for the DIO token during its initial coin offering (ICO) on the Huobi exchange, now known as HTX, in 2021. 
The lawsuit alleges that Jump Trading systematically sold off its DIO holdings during the ICO after influencers had driven the token’s price up to a peak of $0.98, making a significant profit in the process. The resulting sell-off caused the price to plummet to nearly half a cent, allowing Jump to repurchase the tokens at a steep discount before returning them to FractureLabs and ending its market-making agreement. 
<h2 id="span-style-font-weight-400-allegations-of-price-manipulation-span">Allegations of Price Manipulation</h2> 
The suit claims that FractureLabs loaned Jump Trading 10 million DIO tokens, while also sending 6 million tokens to HTX for sale during the token offering. Following the price surge to $0.98, Jump allegedly liquidated its position, pocketing millions in revenue while causing the token’s value to collapse. As a result, the token’s worth plummeted to approximately $53,000, and Jump returned the tokens to FractureLabs before abruptly canceling its agreement. 
Furthermore, Jump Trading also faces accusations of breaching its commitment to maintain the token’s price within certain parameters agreed upon with HTX. This violation led HTX to withhold a significant portion of FractureLabs’ $1.5 million Tether (USDT) deposit. FractureLabs is also pursuing separate arbitration claims against HTX in Singapore for their role in the incident, although HTX is not listed as a defendant in the current U.S. case. 
<h2 id="span-style-font-weight-400-jump-trading-respond-to-allegations-span">Jump Trading Respond to Allegations</h2> 
The market maker, in response to the lawsuit, denied any wrongdoing, stating, “These allegations are factually flawed and completely baseless. Jump intends to vigorously defend itself.” HTX, though not directly involved in the lawsuit, emphasized its commitment to regulatory compliance, declining to comment further due to ongoing litigation. 
This lawsuit adds to <a href="https://thecoinrise.com/jump-trading-aims-to-move-terra-lawsuit-from-illinois-to-california/">Jump Trading’s already complex history</a> in the cryptocurrency industry, particularly after its involvement in the collapsed TerraUSD stablecoin project. 
The post <a href="https://thecoinrise.com/fracturelabs-files-lawsuit-against-jump-trading-over-alleged-dio-price-manipulation/">FractureLabs Files Lawsuit Against Jump Trading Over Alleged DIO Price Manipulation</a> appeared first on <a href="https://thecoinrise.com/">TheCoinrise.com</a>.

FractureLabs Files Lawsuit Against Jump Trading Over Alleged DIO Price Manipulation

Table of Contents

TheCoinrise Media

Other articles published on Oct 17, 2024

Kraken Introduces a New Product to Use Bitcoin on Ethereum Network

Ripple Whales Go Crazy With $100 Million Transfer In 24 Hours; What This Means For XRP Price

Uniswap Labs Introduces Ethereum Layer-2, Unichain, to Address Scalability Issues

Canary Capital Second to File for XRP ETF

Is Liberland the key to crypto’s true revolution?

Bitcoin Drives Market Focus While Altcoins Struggle

Join our free newsletter for daily crypto updates!