Crypto game developer Fracture Labs has sued Jump Trading, accusing the firm of using its DIO gaming token to operate a “pump and dump” scheme.
As part of the agreement, the game developer claimed it loaned 10 million DIO to Jump, worth $500,000, separately sending 6 million tokens, worth $300,000, to HTX.
Jump then sold all holdings, with the “mass liquidation” driving the price down to $0.005, and the trading firm profiting millions, Fracture Labs claimed.
“The result of Defendant Jump’s fraudulent scheme is that DIO was dramatically devalued, making it harder for FractureLabs to attract investors and interest,” the suit claimed.
Jump allegedly promised to keep DIO’s price within certain parameters required by HTX as part of its agreement to list the token on its exchange.
However, due to the price swing, Fracture Labs claims HTX refused to “refund the majority of FractureLabs’s 1.5 million USDT deposit.”
“Jump’s dump of the DIO tokens caused the price to swing outside of the parameters that Jump had recommended for the token and that FractureLabs had agreed to in its listing agreement with HTX,” Fracture Labs claimed.
Fracture Labs accused Jump Trading of fraud and deceit, civil conspiracy to commit fraud, breach of contract and breach of fiduciary duty. It’s requesting a jury trial, damages and disgorgement of profits.
HTX wasn’t named as a defendant in the lawsuit. Jump Trading and HTX did not immediately respond to a request for comment.
