Crypto trading giant Jump Trading has filed a federal lawsuit against former software engineer Liam Heeger, alleging intellectual property theft and violation of non-competition agreements. The company claims Heeger used proprietary knowledge to launch a rival blockchain startup, Unto Labs, after leaving Jump.

According to the complaint, Heeger was a key figure in Jump’s Firedancer project, a blockchain initiative, from February 2023 until his resignation in November 2024. Jump accuses him of exploiting sensitive information, including unreleased codebases, business strategies, and proprietary research, to benefit his new venture.

The controversy deepened after Heeger reportedly raised $3 million in funding at a $50 million valuation for Unto Labs within a month of leaving Jump. The lawsuit alleges he solicited venture capital while still employed at Jump, including during the Breakpoint conference in Singapore.

Heeger, under the X handle "Cantelopepeel," acknowledged his departure to pursue a “next-generation layer-1 blockchain.” However, Jump argues his actions breach a non-competition agreement prohibiting such ventures for two years. The firm also claims Heeger disregarded this obligation, citing California laws that differ from those in Illinois, where Jump is based.

Jump is seeking court enforcement of the non-compete clause, barring Heeger and collaborators from continuing with the startup, and demanding the return of any proprietary information. The case highlights growing tensions over intellectual property rights in the competitive blockchain industry.

Neither Heeger nor Unto Labs has responded to the allegations. Legal experts suggest this case could set a precedent for how non-compete clauses are interpreted in the rapidly evolving crypto sector.