Game developer FractureLabs sues Jump Trading for alleged token price manipulation

2024-10-17 08:37:23

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ChainCatcher news, according to Bloomberg, video game developer FractureLabs has filed a lawsuit against the well-known cryptocurrency market maker Jump Trading in the federal court in Chicago, accusing it of fraud and deception by manipulating the price of the DIO token.

It is reported that FractureLabs originally planned to launch the DIO token on the Huobi exchange (now renamed HTX) in 2021 to raise funds. The company hired Jump Trading as the market maker for DIO and lent 10 million tokens to its subsidiary, while sending 6 million tokens to HTX for sale.

The lawsuit claims that Jump Trading systematically liquidated DIO positions, causing the token price to drop to about 0.5 cents, creating millions of dollars in profits for itself. Subsequently, Jump repurchased about $53,000 worth of tokens at a significant discount and returned them to FractureLabs, after which it terminated the market maker agreement.

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