Bitcoin

Ethereum

FractureLabs, a game development studio, has taken legal action against Jump Trading, alleging that the trading firm manipulated the price of the DIO token back in 2021.The lawsuit claims that Jump Trading, known for its algorithmic trading expertise, took advantage of its position as the market maker for the DIO token during its sale on the Huobi exchange. They were supposed to keep the token&#39;s price stable, but instead, the token saw a sharp increase followed by a steep decline, with Jump Trading allegedly profiting from these fluctuations.According to FractureLabs, Jump Trading sold off its DIO holdings after the price spiked, making millions in the process. The game developer also mentioned that it had lent a significant amount of DIO tokens to Jump, which were returned at a much lower value, resulting in substantial financial losses for FractureLabs.In addition to the lawsuit, the U.S. Commodity Futures Trading Commission (CFTC) has launched an investigation into Jump Trading&#39;s practices in the cryptocurrency market, looking into their market-making activities and investment strategies.Jump Trading&#39;s subsidiary, Jump Crypto, has been involved in various cryptocurrency projects, achieving early success but also encountering difficulties with some investments. The ongoing lawsuit and CFTC investigation have put a spotlight on Jump Trading&#39;s operations in the <a href="https://optimisus.com/news/crypto-news/italy-plans-to-raise-the-capital-gains-tax-on-crypto-from-26-to-42/" rel="noopener noreferrer nofollow">crypto space</a>.FractureLabs is seeking compensation for the financial damage it suffered due to the volatile price movements of the DIO token, which it attributes to Jump Trading&#39;s alleged market manipulation. This case highlights the increasing regulatory focus on cryptocurrency market practices, particularly regarding market manipulation and the obligations of market makers.

FractureLabs sues Jump Trading, accusing the firm of manipulating the DIO token price during a 2021 deal

Optimisus

Other articles published on Oct 18, 2024

Meme Coins Lead the October Rally: PopCat, Floki, MEW Target 100% Potential Gains

MicroStrategy, Coinbase, and Other Stocks in Green as Bitcoin Traders Become Greedy

Goatseus Maximus Price Prediction: GOAT Surges 15%, But Analysts Say This Meme Coin Staking Platf...

Top Crypto Analysts Give Timeline for Cardano and IntelMarkets To Reach $1; Can Dogecoin Join Them?

X Empire Announces Privileges for “X” Holders

Ripple Price Prediction: XRP Price To Surge Despite SEC Appeal?

Join our free newsletter for daily crypto updates!