Claiming Jump Trading participated in a fraudulent scheme utilizing the DIO token, game developer Fracture Labs has sued the corporation. On October 15, an Illinois District Court filed the action, alleging Fracture Labs signed a 2021 agreement with Jump Trading. The partnership aimed to launch the DIO token on the Huobi exchange (now HTX), with Jump acting as a market maker.
The arrangement included Fracture Labs lending Jump 10 million DIO tokens, valued at $500,000, and forwarding an extra 6 million tokens to HTX. Online influencers pushed DIO following the token’s debut, which helped to raise the price to $0.98. By now the borrowed tokens were worth around $9.8 million.
According to Fracture Labs, Jump sold out all of its tokens during the price increase, therefore driving the price to drop to $0.005. Allegedly profiting millions from this bulk sale and subsequently repurchasing the tokens at a far reduced price, Jump returned the tokens to Fracture Labs for about $53,000 before calling off their arrangement.
The complaint claims that this program depreciated the DIO token, making it difficult for Fracture Labs to attract new investors. Under another agreement to stop market manipulation within the first 180 days of trade, the business also says it paid HTX $1.5 million USDT. However, HTX allegedly refused to reimburse a significant portion of this payment due to fluctuations in the token’s price.
Demanding damages and the restoration of earnings, Fracture Labs is accusing Jump Trading of fraud, breach of contract, and civil conspiracy. HTX, while not named as a defendant, has reaffirmed its commitment to regulatory compliance and refrained from further comment due to the ongoing action. Jump Trading has not responded to the claims yet.
