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    Jump Trading accused of crypto ‘pump and dump’ in game dev’s suit

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    Fracture Labs is suing Jump Trading for allegedly manipulating the market of its DIO gaming token in a pump-and-dump scheme. Fracture Labs had partnered with Jump to launch the DIO token on crypto exchange HTX. After receiving a loan of tokens from Fracture, Jump is accused of selling all their holdings once the price soared, causing the token’s value to plummet. Jump allegedly bought back the cheaper tokens and returned them, significantly devaluing the DIO token. HTX was not named in the lawsuit and neither Jump nor HTX have commented on the allegations.

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    Crypto game creators, Fracture Labs, have taken legal action against Jump Trading, accusing the firm of scamming them. Apparently, Jump used Fracture Labs’ DIO gaming token to run a “pump and dump” operation.

    Last year, Fracture Labs had teamed up with Jump to help launch their DIO token on the crypto exchange Huobi, now known as HTX. As part of the plan, Fracture Labs handed over 10 million DIO tokens, valued at $500,000, plus an additional 6 million tokens, valued at $300,000, to HTX.

    To help sell the tokens, HTX had online influencers promoting them and soon the price rocketed to $0.98. This meant that the loaned tokens were now worth an incredible $9.8 million. That’s when Jump allegedly sold all their holdings in one go, causing the token’s value to dip to a mere $0.005. This allowed Jump to pocket millions – or so Fracture Labs claim.

    Jump is then said to have snapped up the cheaper tokens, valued around $53,000, gave them back to Fracture Labs and then walked away from the agreement. Because of this, Fracture Labs argue that the DIO token was significantly devalued, making it much harder for them to attract potential investors and interest.

    Another part of the deal involved Fracture Labs transferring 1.5 million in Tether (a type of cryptocurrency) to an HTX account. This served as a guarantee that they wouldn’t manipulate the DIO token’s market for the first 180 days of trading.

    Supposedly, Jump had agreed to keep the DIO token’s price within certain boundaries as part of HTX’s agreement to list the token. But because of the price swing, Fracture Labs states that HTX refused to give back most of their 1.5 million Tether deposit.

    Fracture Labs pinpoint this as the moment when Jump’s token dump caused the price to dramatically swing outside of the agreed parameters. They have now accused Jump Trading of fraud, deceit, conspiracy, and other serious charges, and they’re keen for a jury to decide the outcome.

    HTX wasn’t accused in the lawsuit, and neither Jump Trading nor HTX have offered any comments on the matter yet.

    Source: Cointelegraph

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