Jump Trading claims that there is no "legal reason" for the lawsuit to take place in Illinois.
High-frequency trading specialist Jump Trading desires to relocate its ongoing class action litigation to a North Californian district court from Illinois. The company believes this move could expedite the judicial proceedings significantly.
On June 9th, Jump Trading submitted a motion, arguing that the decision to initiate the lawsuit in Illinois was an "attempt at forum shopping." The term "forum shopping" describes the deliberate choice of court or jurisdiction that seemingly supports the plaintiff's stance due to favorable laws or rules.
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This argument finds its basis in the fact that the primary plaintiff hails from New Jersey and is represented by legal entities from New York and California.
There's no compelling legal reason to tie the case to Illinois. Most of the critical witnesses and documents are either located outside of Illinois or can be just as easily accessed from other places.
Moreover, Jump Trading underscores that the plaintiffs are concurrently pursuing a relevant lawsuit in California. This ongoing lawsuit has been in progress for over a year, and Jump Trading asserts that both cases should be unified or coordinated.
Jump Trading was recently included in a class action suit, which was initiated by Taewoo Kim. Represented by Selendy Gay and Robbins Geller Rudman & Dowd LLP, Kim is filing on his own behalf and other individuals who faced severe losses due to the meltdown of the Terra/Luna ecosystem.
The lawsuit claims that Jump Trading, alongside its CEO, Kanav Kariya, orchestrated a market manipulation scheme. Based on the allegations, the malicious tactics allowed Jump Trading to generate profits of $1.3 billion.
Beyond the claim of market manipulation, Jump Trading and Kariya have also been charged with breaches of Commodity Exchange and Commodity Futures Trading Commission norms.
The downfall of the TerraUSD/LUNA project in May 2022 eradicated billions of dollars from the market. Do Kwon, the project's founder, was arrested in Montenegro in March for false travel document usage. It is worth noting that Do Kwon faces jail sentences in the United States, South Korea, and Montenegro.
The determination of Jump Trading to move its litigation to a North Californian district court is emblematic of its strategy to expedite the proceedings. The unfolding legal situation remains dynamic as the plaintiffs continue to seek compensation for their losses from the collapse of the Terra/Luna ecosystem.
