Fracture Labs, the developer of the Web3 game Decimated, has filed a lawsuit against Jump Crypto, alleging a pump-and-dump scheme involving its in-game currency, DIO. The suit, lodged on Oct. 15 in the Northern District of Illinois, accuses Jump Crypto of collaborating with Huobi (now HTX) to freeze $1.4 million of the developer’s funds. Fracture Labs claims that Jump Crypto did not uphold its market-making obligations, resulting in the depreciation of DIO amid manipulation and devaluing conditions from the token’s launch. The agreement mandated a $1.5 million security deposit with HTX, which was forfeited due to alleged price fluctuations outside agreed parameters. This financial loss led to significant layoffs within Fracture Labs, demonstrating the serious effects of these purported actions. As this lawsuit unfolds, it raises broader concerns regarding market makers' roles in crypto trading and the potential for exploitation during token launches.

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