Jump Trading seeks to move Terra class-action lawsuit to California

Algorithmic and high-frequency trading firm Jump Trading is seeking to have the class-action lawsuit against the firm moved from Illinois to a court in northern California, arguing that it would significantly speed up legal proceedings.

The lawsuit was initially filed on May 9 by Taewoo Kim, individually and on behalf of others impacted by the collapse of the Terra/Luna ecosystem. Kim is represented by Selendy Gay and Robbins Geller Rudman & Dowd LLP.

The suit alleges that Jump Trading and its CEO, Kanav Kariya, were involved in a price manipulation scheme tied to the infamous TerraUSD stablecoin, which allegedly resulted in $1.3 billion worth of profit for the company.

Additionally, the firm and Kariya were accused of violating Commodity Exchange and Commodity Futures Trading Commission regulations and of common law unjust enrichment.

In the latest motion, filed on June 9, the defendants argued that the choice to file the suit in Illinois was an “attempt at forum shopping,” as the main plaintiff is a New Jersey-based resident represented by law firms from New York and California.

The term “forum shopping” refers to the practice of selecting courts or jurisdictions that supposedly have the most favorable rules or laws that support the position of the plaintiff.

Excerpt from motion to transfer venue. Source: CourtListener

“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 doc reads.

The defendants added that the plaintiffs also have a simultaneous and relevant suit that has been ongoing in California for over a year, and as such, both cases should be consolidated or coordinated.

Related: Binance.US hires former SEC enforcement official amid lawsuit: Report

“This case is not the first — or even second or third — to be filed on these facts. Rather, multiple lead plaintiffs have been litigating these exact same events for nearly a year in the Northern District of California in Patterson v. Terraform Labs, Pte. Ltd.,” the defendants argued, adding:

“This case should be transferred 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 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, wiping billions of dollars from the market.

The project’s founder Do Kwon was arrested in Montenegro in March for allegedly using false travel documents. He is potentially on the hook to serve prison time in both the U.S. and South Korea.

Magazine: Unstablecoins: Depegging, bank runs and other risks loom

Sourced from cointelegraph.com.

Written by Brian Quarmby on 2023-06-15 09:40:22.

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