The administrator overseeing the wind-down of Terraform Labs has filed a $4 billion lawsuit against high-frequency trading firm Jump Trading. They accuse the market maker of secretly manipulating prices and contributing to the collapse of Do Kwon’s once-dominant crypto ecosystem.

It comes barely a week after the judge issued Do Kwon his sentence, a 15-year term in federal prison for orchestrating a $40 billion crypto fraud.

Terraform Labs Estate Seeks $4 Billion From Jump Trading

The complaint names Jump Trading, co-founder William DiSomma, and former head of its crypto division, Kanav Kariya. It alleges unlawful profiteering tied to the failure of TerraUSD (UST).

Citing court filings, The Wall Street Journal reports that the Terraform Labs estate claims Jump conducted undisclosed, large-scale trading interventions to prop up UST during multiple de-pegging episodes in 2021 and 2022.

Rather than stabilizing the system, the administrator argues these actions created a false sense of market confidence. In turn, this masked structural weaknesses that ultimately made Terra’s collapse more severe.

At the center of the lawsuit is the claim that Jump aggressively purchased UST whenever the algorithmic stablecoin fell below its $1 peg. These purchases allegedly inflated demand artificially, misleading market participants into believing the peg mechanism was functioning as designed.

The estate argues that Jump was not acting as a neutral liquidity provider. Instead, it exploited its market position and inside knowledge to extract profits from the volatility it helped manage.

The filing alleges that Jump earned roughly $1 billion through these strategies, benefiting from preferential token arrangements and trading advantages. Meanwhile, retail investors remained unaware of the behind-the-scenes support.

When Terra ultimately unraveled in May 2022, triggering an estimated $40 billion wipeout across UST and LUNA, the lawsuit claims the earlier illusion of stability magnified the damage.

It is worth mentioning that this is not the first time Jump Trading is linked to manipulation allegations. In October 2024, game developer FractureLabs filed a lawsuit against Jump Trading over crypto manipulation claims

“Jump then systematically liquidated its DIO holdings, generating millions of dollars in revenue for itself,” Bloomberg reported, citing an excerpt in the lawsuit.

Do Kwon’s Sentencing Puts Fresh Spotlight on Jump Trading’s Market Power

The legal action arrives amid renewed headlines of Terra’s collapse. It follows Do Kwon’s recent sentencing to 15 years in prison over fraud charges related to the project.

In the days following that ruling, some market observers publicly speculated that additional institutional players could face legal exposure, with Whale Calls citing Jump Trading.

When jump trading ? https://t.co/yowAZA1DAw

— WhaleCalls (@whalecalls) December 11, 2025

Beyond the immediate allegations, the case highlights Jump Trading’s formidable technological capabilities.

Jump Trading’s Technological Edge and Its Role in the Lawsuit

Jump is widely regarded as one of the most sophisticated high-frequency trading firms globally. Industry reporting has highlighted its willingness to spend vast sums to gain marginal speed advantages, including the acquisition of a microwave tower previously used by NATO to shave milliseconds off transatlantic trade transmission times.

In 2018, Jump also partnered with firms such as Citadel to build the “Go West” undersea fiber-optic cable, connecting Chicago and Tokyo and enabling faster access to global futures markets.

According to commentary from Colin Wu, Jump’s quote data processing capabilities are considered to be on a vastly different scale from those of many competitors. This reflects the asymmetric power that large trading firms can wield in both traditional and crypto markets.

That technological edge now forms part of the broader context of the lawsuit. While the complaint does not allege the use of illegal infrastructure, it argues that Jump’s scale and sophistication amplified the market impact of its UST trades. This raises questions about fairness, disclosure, and market integrity.

If successful, the case could have far-reaching implications. A ruling in favor of the Terraform Labs estate may establish a clearer legal boundary between legitimate market making and manipulation in crypto markets, potentially reshaping how large trading firms operate.

It could also lead to substantial financial penalties, with any recovered funds likely directed toward compensating creditors and victims of the Terra collapse.

Jump Trading has not publicly commented on the lawsuit as of the time of publication, but is expected to mount a vigorous defense.

As discovery continues, the case may offer rare insight into the opaque mechanics of crypto market making. Beyond that, it could mark a watershed moment in the industry’s ongoing reckoning with accountability.

The post $4 Billion Lawsuit Claims Jump Trading Helped Engineer Terraform’s Collapse appeared first on BeInCrypto.

The Bank of Japan (BOJ) raised its policy interest rate by 25 basis points to 0.75% on December 19. It marks its highest level in nearly 30 years, reinforcing the country’s gradual exit from ultra-easy monetary policy.

Yet despite the historic shift and warnings of a global liquidity squeeze, Bitcoin showed little reaction, rising just under 1% and holding in the $87,000 range.

BOJ Just Raised Interest Rates Another 25 Basis Points – Why Did Bitcoin Hold Steady?

The muted response stands in contrast to history. Previous BOJ tightening cycles have often coincided with sharp sell-offs in crypto markets, particularly as yen carry trades unwind and global liquidity tightens.

THE BANK OF JAPAN MIGHT BE BITCOIN’S BIGGEST ENEMY

Japan holds the most US debt.
Every time they hike, Bitcoin bleeds:

March 2024: -23%
July 2024: -30%
Jan 2025: -31%

Next hike: Dec 19
Next move: loading…

If the pattern repeats, $70K is in play. pic.twitter.com/R5916R702I

— Merlijn The Trader (@MerlijnTrader) December 14, 2025

This time, however, traders appeared unfazed, suggesting the move had been fully priced in well ahead of the announcement. Market participants had largely anticipated the decision.

Japan’s rate increase represents a symbolic break from decades of near-zero interest rates that made the yen a cornerstone of global funding markets. Cheap yen borrowing fueled leverage across equities, bonds, and cryptocurrencies.

As Japanese yieds rise and narrow the gap with global rates, those trades become less attractive, potentially forcing investors to unwind risk positions. Still, Bitcoin’s calm reaction suggests markets were prepared.

According to analysts, however, the focus was never the hike itself, but what comes next.

“Markets are pricing in a near-certain 25 basis point hike, marking the highest Japanese policy rate in about 30 years. While the hike itself is largely anticipated, the real focus is on Governor Ueda’s forward guidance during the press conference—signals of future hikes could amplify effects,” wrote analyst Marty Party.

That forward guidance may prove crucial. The BOJ has signaled it remains prepared to raise rates further, potentially to 1% or higher by late 2026, depending on wage growth and sustained inflation.

That outlook keeps pressure on risk assets, even if the initial move failed to trigger volatility.

Bitcoin Holds Firm as Altcoins Face a Prolonged Liquidity Squeeze

Analysts argue that Bitcoin’s resilience could be a bullish sign. Blueblock pointed to historical patterns, noting the divergence from past reactions.

“The BOJ just hiked rates to 0.75%, ending decades of ultra-loose policy and narrowing the gap with global yields. History shows that every prior tightening has triggered 20–30% Bitcoin drops as yen carry trades unwind and liquidity tightens. Yet with the hike fully priced in and BTC holding around $85k–$87k, this could be the dip buyers have been waiting for,” the analyst wrote.

However, not all corners of the crypto market are expected to fare as well. Altcoins, which are typically more sensitive to shifts in liquidity, remain vulnerable if Japanese tightening accelerates.

The prospect of higher rates through 2026 suggests a prolonged headwind rather than a one-off shock.

“BOJ signals it is ready to hike further, potentially 1% or higher by late 2026, depending on wage growth and sustained inflation. NO MERCY FOR ALTCOINS,” commented Money Ape.

Bitcoin’s stability reflects a market that had ample time to prepare for the BOJ’s decision. Whether that resilience holds will depend less on the December hike itself and more on how aggressively Japan continues its path of tightening. It will also hinge on how global liquidity adapts to the end of one of its longest-running monetary backstops.

The post BOJ Raises Interest Rates to 0.75%, But Bitcoin Stands Unshaken—Is the Crypto Calm a Warning or Opportunity? appeared first on BeInCrypto.

Over $3.16 billion worth of Bitcoin and Ethereum options are set to expire on Friday at 08:00 UTC on Deribit, marking the final major derivatives settlement before Christmas.

With liquidity thinning out as the holiday period approaches and positioning tightly clustered around key price levels, traders appear cautious, waiting for a clearer catalyst before committing to a direction.

What to Expect as Nearly $3 Billion Bitcoin Options Expire

Bitcoin accounts for the bulk of the expiry, with roughly $2.69 billion in notional value rolling off. At the time of writing, BTC was trading at $87,194, representing a 0.54% increase over the past 24 hours.

The max pain level for today’s expiring Bitcoin options sits at $88,000, placing the spot price just below the strike. This is where the greatest number of options expire worthless.

Meanwhile, open interest data suggests a relatively balanced but slightly defensive stance. Bitcoin call open interest stands at 17,506 contracts, compared with 13,309 puts, resulting in a total open interest of 30,815 contracts and a put-to-call ratio of 0.76.

While calls still dominate numerically, the concentration of positioning near $88,000 points to limited upside momentum unless the spot decisively breaks higher. Deribit analysts highlighted this dynamic in a market update.

“BTC open interest is concentrated around 88K, with slightly heavier put positioning, pointing to a relatively contained expiry unless spot breaks range,” they wrote.  

The commentary reinforces the view that Bitcoin could remain range-bound through settlement, especially amid pre-holiday caution.

Over $470 Million Ethereum Options Expire Today: What Investors Should Know

Ethereum presents a different setup. Approximately $473 million in ETH options are expiring, with the asset trading at $2,928, representing a 3.37% increase in the last 24 hours. ETH’s max pain level is higher, at $3,100, leaving spot price meaningfully below the key strike.

Ethereum’s open interest profile is more evenly split, with 78,524 call contracts versus 83,547 puts. This results in a put-to-call ratio of 1.06 and a total open interest of 162,071 contracts.

Unlike Bitcoin, ETH positioning is spread across a wider range of strikes, indicating greater uncertainty about the near-term direction.

“ETH positioning is more distributed across strikes, with notable upside interest above 3.4K, keeping larger moves in play if volatility reaccelerates,” Deribit analysts indicated.

The analysts added that positioning suggests patience into settlement, which happens at 08:00 UTC today, with traders waiting for a clearer catalyst rather than forcing direction.

Beyond today’s options expiry, attention is already shifting to December 26 and early 2026 positioning.

“December 26 85k Put OI now ~15k ($1.25bn notional) on Deribit, and bears+FUD currently in control with ATM 86k,” Deribit Insights noted.

At the same time, upside bets appear less aggressive in the near term, with analysts observing that “the Dec26 100k+ $1.75bn Call condor feels a distant punt now.”

However, longer-dated flows tell a more constructive story, with recent flows continuing to show upside bias into 2026. According to the analysts, this suggests that while short-term sentiment remains cautious, longer-horizon traders are still positioning for a renewed bullish phase.

As the final options expiry before Christmas approaches, both Bitcoin and Ethereum appear caught between near-term restraint and longer-term optimism, leaving their next decisive move unresolved.

Traders and investors may experience some volatility, which the BOJ’s interest rate decision could exacerbate. However, markets tend to stabilize as traders adjust to new market conditions.

The post $3.16 Billion Crypto Options Expiry Puts Bitcoin and Ethereum’s Next Move in Question appeared first on BeInCrypto.

Welcome to the US Crypto News Morning Briefing—your essential rundown of the most important developments in crypto for the day ahead.

Grab a coffee as BitMine’s bold Ethereum strategy is back in focus with market pressure building and investor nerves fraying. Losses are mounting, the stock is sliding, and yet influential buyers are quietly stepping in, setting up a familiar crypto standoff between conviction and caution.

Crypto News of the Day: Losses Mount at BitMine, Yet Tom Lee and Ark Double Down on Ethereum

BitMine’s aggressive Ethereum treasury strategy is coming under renewed scrutiny as prolonged unrealized losses weigh on investor sentiment and its stock continues to slide.

Shares of BitMine (BMNR), widely described as the world’s largest Ethereum treasury company, have fallen sharply in recent sessions. The stock closed Wednesday at $29.32, down 6.59% on the day and roughly 24% over the past five days,

The reflects market unease around both broader market weakness and BitMine’s mounting unrealized losses on ETH holdings.

Yet even as concerns grow around downside exposure, some of crypto’s most influential bulls are doubling down. This highlights a widening divide over Ethereum’s role in institutional treasury strategies.

Despite the drawdown, BitMine Chairman Tom Lee appears unfazed. On-chain data flagged by Arkham Intelligence indicates that Lee has continued to accumulate Ethereum at scale.

“Tom Lee just bought another $140 million ETH. Two fresh wallets just received $140.58 million ETH from FalconX. Their acquisition behavior matches BitMine’s prior purchase patterns. Tom Lee continues to buy the dip,” wrote Arkham.

The activity reinforces BitMine’s long-standing thesis that Ethereum remains structurally undervalued and is positioned to benefit from regulatory clarity, institutional adoption, and the expansion of on-chain use cases. This holds despite near-term price action telling a different story.

Cathie Wood’s Ark Invest is also signaling conviction. According to trade filings, Ark purchased $10.56 million worth of BitMine shares on Wednesday across three of its exchange-traded funds.

🚨ARK BUYS MORE CRYPTO STOCKS!

Ark Invest bought $10.56M of BitMine, $5.9M of Coinbase, and $8.85M of Bullish on Wednesday.

Cathie Wood says a “real break” in inflation is coming in 2026. pic.twitter.com/lW8AWfuISC

— Coin Bureau (@coinbureau) December 18, 2025

The buy followed an additional $17 million purchase earlier in the week, bringing Ark’s recent accumulation to nearly $28 million.

Ark Expands Crypto Equity Exposure as Treasury Strategies Split

Ark’s buying spree extended beyond BitMine. The firm also added $5.9 million in Coinbase shares and $8.85 million worth of Bullish, leaning into crypto equities that have broadly been trending lower. Coinbase fell 3.33% on Wednesday to $244.19, while Bullish slipped 1.89% to $42.15.

The moves reflect Wood’s broader macro-outlook. The Ark Invest CEO, Cathie Wood, has repeatedly argued that easing inflation and improving liquidity conditions could set the stage for a renewed crypto rally.

BitMine’s leadership mirrors that optimism. The company has continued purchasing ether weekly during the downturn, with Lee previously stating that regulatory and legislative shifts in Washington, combined with rising institutional engagement, mean “the best days for crypto” are still ahead.

Nonetheless, not everyone shares that view. Analyst Samson Mow has taken the opposite approach, opting for a clean break from Ethereum exposure.

“I’ve decided to liquidate all BitMine Ethereum holdings and pivot to a Bitcoin-only treasury strategy,” wrote Mow.

Mow’s decision highlights a growing philosophical split within crypto treasuries: whether diversification into Ethereum represents strategic foresight or unnecessary risk.

For BitMine, that debate is no longer theoretical, and as unrealized losses persist, Lee and Ark’s conviction may not be rewarded soon, unless tides turn. In the same way, Ethereum’s volatility continues to test the limits of institutional patience.

Chart of the Day

Byte-Sized Alpha

Here’s a summary of more US crypto news to follow today:

• Bitfinex Bitcoin whale long positions surge 36%: What does it mean?
• Bitcoin’s 5% whiplash was no accident — Charts reveal the full story.
• Peter Brandt turns bearish on XRP price despite Ripple’s push for multichain expansion.
• The 11th crypto prediction from Bitwise may not survive—James Seyffart warns.  
• Japan’s Bond yields hit 1.98%: BOJ rate shift impacts gold, silver, and Bitcoin.

Crypto Equities Pre-Market Overview

Company	At the Close of December 17	Pre-Market Overview
Strategy (MSTR)	$160.38	$162.80 (+1.51%)
Coinbase (COIN)	$244.19	$250.37 (+2.53%)
Galaxy Digital Holdings (GLXY)	$22.81	$23.11 (+1.31%)
MARA Holdings (MARA)	$9.93	$10.03 (+1.01%)
Riot Platforms (RIOT)	$12.96	$13.07 (+0.85%)
Core Scientific (CORZ)	$13.57	$14.00 (+3.17%)

The post Ethereum Dip Pressures BitMine, but Tom Lee and Ark Keep Buying | US Crypto News appeared first on BeInCrypto.