Game developer sues Jump Trading over alleged cryptocurrency ”pump and dump” scheme

Fracture Labs, a cryptocurrency game developer, has announced that it will launch Jump Trading.
Trading, alleging that it made millions of dollars through a "pump-and-dump" scam using its DIO token.
Fracture Labs filed a lawsuit in federal court in Illinois on the 15th alleging that Jump Trading 2021 and the market creators
maker) to assist in the initial launch of the DIO token on the cryptocurrency exchange Huobi (now HTX).
According to the lawsuit, Fracture Labs “lent Jump Trading 100,000 DIO tokens (worth $500,000, or approximately 75 million yen) and provided Jump Trading with a separate 60,000 tokens (worth $300,000).
After the launch of the DIO token, HTX promoted the token through online influencers. This led to a rise in the price.
skyrocketed to $0.98, bringing the value of the loaned tokens to $9.8 million, the lawsuit alleges.
Fracture Labs announced that Jump Trading had sold all of its tokens, causing a mass liquidation.
, which they claim caused the price to crash to $0.005, making Jump Trading millions of dollars in profits in the process.
The company said Jump Trading subsequently repurchased the tokens at a lower price and then
The lawsuit states that "Defendant Jump Trading's fraudulent scheme resulted in the loss of the value of DIO.
"The value of the cryptocurrency fell significantly, making it difficult for Fracture Labs to attract investors and attention," the suit alleges.
Labs will deposit 1.5 million USDT (Tether) into the HTX custody account, which will be used to fund the first 180 days of DIO token trading, Fracture
The bond was a guarantee that Labs would not manipulate the market, the lawsuit says.
Jump Trading will maintain the price of DIO within the range consistent with the HTX listing terms and conditions.
However, due to price volatility, HTX claims it did not return most of Fracture Labs' 1.5 million USDT deposit.
Labs said, "Due to Jump Trading's dumping of DIO tokens, the price has risen as recommended by Jump Trading and Fracture
Fracture Labs claims that Jump Trading was fraudulent and deceptive, and that it was conducted with the intent to defraud.
The lawsuit alleges civil conspiracy, breach of contract and breach of fiduciary duty and seeks a jury trial, damages and disgorgement. HTX is not named as a defendant in the lawsuit.