Core Viewpoint - The administrators of Terraform Labs are suing Jump Trading for $4 billion, alleging that Jump profited from the collapse of Terra and engaged in manipulative practices that harmed investors [1][2]. Group 1: Lawsuit Details - The lawsuit was filed by Todd Snyder, the court-appointed plan administrator for Terraform's bankruptcy, in federal court in Illinois [1]. - The complaint accuses Jump Trading of exploiting the Terraform ecosystem through manipulation and self-dealing, which enriched Jump while devastating investors [2]. - Snyder claims that Jump entered a secret arrangement to support the TerraUSD peg before its collapse and profited significantly from the situation [4]. Group 2: Impact of Terraform's Collapse - The collapse of Terraform erased approximately $40 billion in value and had widespread repercussions across the crypto industry, affecting lenders, funds, and exchanges [3]. - The failure of Terraform led to the downfall of major entities like Three Arrows Capital, as confidence in the market evaporated [3]. - Terraform filed for bankruptcy in January 2024, recovering about $300 million for creditors as it unwinds its remaining assets [3]. Group 3: Regulatory Actions and Consequences - Jump Trading reportedly made around $1 billion in profit from trading Luna, as indicated by the SEC in court filings [4]. - Terraform's former leadership, including Do Kwon, faced significant legal challenges, culminating in a $4.5 billion settlement with the SEC and a 15-year prison sentence for Kwon [5].