Key Takeaways:
- Fracture Labs has sued Jump Trading, accusing it of a “pump and dump” scheme involving the DIO token, leading to massive financial losses.
- Jump Trading allegedly sold its DIO holdings at a peak price of $0.98, causing a market crash, and repurchased the tokens at a devalued price.
- Fracture Labs claims this action severely hurt its ability to attract investors and led to additional financial disputes with the crypto exchange HTX.
Fracture Labs, a crypto game developer, has filed a lawsuit against Jump Trading, accusing the firm of orchestrating a “pump and dump” scheme involving its DIO token.
The lawsuit, filed on October 15, alleges that in 2021, Jump Trading agreed to act as a market maker for the token’s initial offering on the Huobi exchange (now HTX).
Video-game developer FractureLabs filed a lawsuit against Jump Trading, accusing one of the cryptocurrency industry’s biggest market makers of “fraud and deceit." https://t.co/x1pc9TDMgb
— Bloomberg Crypto (@crypto) October 16, 2024
Fracture Labs provided Jump with 10 million DIO tokens, valued at $500,000, for liquidity.
After a price spike to $0.98, Jump Trading allegedly sold its DIO holdings, triggering a price crash to $0.005.
The lawsuit claims this netted Jump millions in profit.
Jump then repurchased the devalued tokens for $53,000 and returned them to Fracture Labs, allegedly damaging the token’s value and hurting the developer’s ability to attract investors.
Fracture Labs is seeking damages, accusing Jump Trading of fraud, breach of contract, and civil conspiracy.
HTX is not named as a defendant, and neither Jump Trading nor HTX has commented on the case.
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