Game developer Fracture Labs accused Jump Trading of using its DIO token to profit millions from a “pump and dump” scheme.
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.
In the Oct. 15 suit filed in an Illinois District Court, Fracture Labs alleged that in 2021, it entered an agreement with Jump as a market maker to assist with an initial offering of its DIO token on the crypto exchange Huobi, now HTX.
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.
