Wu said that according to Bloomberg, video game developer FractureLabs filed a lawsuit against Jump Trading, a well-known cryptocurrency market maker, in the U.S. Federal Court in Chicago, accusing it of fraud and deception by manipulating the price of DIO tokens. FractureLabs originally planned to issue DIO tokens for the first time on the Huobi (now renamed HTX) exchange in 2021 to raise funds. The company hired Jump Trading as a market maker for DIO and loaned 10 million tokens to its subsidiary, while sending 6 million to HTX for sale. The lawsuit alleges that Jump Trading systematically liquidated DIO holdings, causing the token price to fall to about 0.5 cents, creating millions of dollars in profits for itself. Subsequently, Jump repurchased about $53,000 in tokens at a significant discount and returned them to FractureLabs, and then terminated the market maker agreement.
