Jump Trading Accused of ‘Pump and Dump’ in Game Developer’s Suit
- Developer alleges manipulation of its DIO token on Huobi
- FractureLabs says it also filed arbitration against exchange
The case was filed on Tuesday in US federal court in Chicago.
Photographer: Daniel Acker/BloombergThis article is for subscribers only.
Video-game developer FractureLabs filed a lawsuit against Jump Trading, accusing one of the cryptocurrency industry’s biggest market makers of “fraud and deceit” by manipulating the price of a token used in an online game.
According to the suit, FractureLabs planned to raise funds through an initial offering of the DIO token on the Huobi exchange in 2021. The company said it retained Jump as a market maker for DIO, a token used within its Decimated online game that also trades in the crypto market. It loaned 10 million of the tokens to a Jump subsidiary as part of the agreement, while separately sending 6 million DIO tokens to Huobi, now known as HTX, to sell in the offering.