[Did Jump Trading just “destroy” trust in the entire crypto industry? 】
Fracture Labs filed a lawsuit against Jump Trading in Illinois District Court on October 15, accusing the company of breaching the agreement and manipulating the DIO token.
Events began in 2021 when Fracture Labs launched the DIO token to power its blockchain game Decimated and partnered with Jump Trading to promote the token. Jump agrees to act as a market maker, providing liquidity to stabilize prices. Fracture Labs lent 10 million DIO tokens, worth about $500,000 at the time, and sent 6 million tokens, worth about $300,000, to the HTX exchange in preparation for the listing.
DIO's price surged to $0.98 after the listing, and the value of Jump's borrowed tokens increased from $500,000 to $9.8 million. Fracture Labs alleges that Jump dumped the tokens in large quantities, causing the price to plummet to $0.005, and then bought the tokens back for as low as $53,000, making a huge profit and returning the 10 million borrowed tokens.
Fracture Labs stated that the DIO price collapse caused significant damage to its ability to attract new investors, and HTX also refused to return the 1.5 million USDT deposited by Fracture Labs, further exacerbating its financial losses. Fracture Labs is now accusing Jump Trading of fraud, breach of contract and conspiracy, and is seeking damages and restitution of profits, as well as a jury trial.
