According to BlockBeats, on October 17, video game developer FractureLabs filed a lawsuit against cryptocurrency market maker Jump Trading, accusing it of "fraud and deception" by manipulating the prices of tokens used in online games.
According to the lawsuit, FractureLabs planned to raise funds through an initial offering of DIO tokens on Huobi HTX in 2021. The company said it retained Jump as a market maker for DIO, a token used in its online game Decimated and also traded on crypto markets. As part of the agreement, it loaned 10 million tokens to a Jump subsidiary while separately sending 6 million DIO tokens to HTX to sell in the offering.
“Jump systematically liquidated its DIO holdings, generating millions of dollars in revenue for itself,” the indictment states, as the sales caused the price of DIO to drop to about 0.5 cents. Jump then repurchased the heavily discounted tokens, which were then worth about $53,000, returned them to FractureLabs, and then canceled its agreement to act as a market maker for the tokens. (Bloomberg)