EKO is litigating a class action against Chicago-based investment giant Jump Trading.

 

The case alleges Jump denied requests by investors to redeem digital tokens for cash, despite undertaking contractual obligations to do so.

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When retail investors buy and sell cryptocurrency, the actual transactions are facilitated by market makers and liquidity providers acting behind the scenes. An investor using an exchange or wallet service to make a transaction. But typically, the exchange/wallet does not act as the buyer or seller of the asset. Instead, the trade is with an anonymous third party market maker who holds massive amounts of the asset to facilitate trading. In some circumstances, market makers have an obligation to fill investor trade orders.

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When the cryptocurrency TerraUSD (UST) began to collapse in May 2022, hundreds of investors rushed to sell their UST tokens and redeem them for U.S. dollars. Jump was the third-party market maker responsible for facilitating these trades, but it denied countless requests. Investors were left helpless as their investments plummeted.

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EKO has filed a class action against Jump for violating its obligations owed to UST investors.

 

If you were prevented from redeeming UST for U.S. dollars by a trust, please contact us.