Todd Snyder, the bankruptcy administrator for Terraform Labs, has filed a lawsuit in Illinois district court against Jump Trading, its co-founder William DiSomma, and president Kanav Kariya, seeking $4 billion in damages. The suit claims Jump Trading manipulated, concealed, and self-dealt within the TerraUSD ecosystem, securing profits of about $1 billion from Luna sales before the 2022 collapse. Terraform Labs’ algorithmic stablecoin, TerraUSD, lost its dollar peg in May 2022, triggering the near-total loss of Luna’s value and wiping out $40 billion from the crypto market. Terraform filed for bankruptcy in January 2024 and settled $4.5 billion with the SEC over securities fraud. Founder Do Kwon was sentenced to 15 years in prison in August 2025.