Exclusive: Jump's Full Motion to Dismiss the Terra Lawsuit, and What It Means for Creditors

On August 19, 2026, eight Jump Trading entities asked Judge Joan Lefkow of the Northern District of Illinois to dismiss the Terraform estate's amended lawsuit against them, with prejudice. TerraClaim has obtained the full 85-page motion, filed as ECF No. 94, and publishes it in full with this article. To our knowledge, the complete filing has not been published anywhere else.

For creditors holding Crypto Loss Claims, the filing raises a practical question: what, if anything, this lawsuit may add to their recovery, and when. The honest answer is that no one knows yet.

Exclusive document
Jump Defendants' Motion to Dismiss Amended Complaint
Snyder v. Jump Trading, LLC, No. 1:25-cv-15414 (N.D. Ill.), ECF No. 94 · 85 pages
Read the full motion (PDF)

In Brief

• Jump asks the court to dismiss every claim against its eight entities, with prejudice.

• No court has ruled on the motion. No court has found Jump liable, and none has rejected the estate's claims either.

• The outcome is uncertain: the case could be dismissed, settle, or succeed, and any recovery could take years and face collection issues.

• A ruling on the motion does not change any Allowed CLC Amount and does not set a distribution date.

Where the Case Stands

Plan Administrator Todd Snyder filed suit on December 18, 2025 (ECF No. 1). Jump and co-founder William DiSomma moved to dismiss in March 2026 (ECF Nos. 45 and 46). The Plan Administrator then filed an amended complaint on May 1, 2026 (ECF No. 56), and the case was paused for several weeks over a dispute about evidence (ECF No. 77).

The renewed motion to dismiss followed on August 19, 2026. It is filed by eight Jump entities, including Jump Trading, LLC, Jump Crypto Holdings and Tai Mo Shan. Former Jump Crypto president Kanav Kariya and William DiSomma are separate defendants. As of October 14, 2026, we have not identified a ruling on the motion.

What Jump Is Asking For

Jump asks the court to end the case against its entities now, before any evidence is exchanged, and to do so with prejudice, meaning the claims could not be refiled. In broad terms, it argues that the claims were brought too late, that they fall outside the laws invoked, that the estate cannot pursue them on behalf of creditors, and that the complaint does not adequately describe any wrongdoing by Jump.

These are one side's arguments, not findings. The Plan Administrator can respond before the court rules. A denial of the motion would not mean Jump is liable, and a dismissal would not mean the allegations are false. Readers who want the primary source can read the full motion published with this article.

What Creditors Can Actually Count On

A creditor's recovery depends on two things that can be measured: the assets the Wind Down Trust actually holds and can distribute, and the total amount of allowed claims that share in them. Unless and until it actually results in a distribution to the estate, pending litigation is neither.

Until a judgment is collected or a settlement is paid, the Jump lawsuit adds nothing to the assets available for distribution. A careful assessment of a claim therefore starts from the assets that can be counted on today, and treats pending litigation as a possibility whose value and timing cannot be known today. The Plan Administrator's reports on the bankruptcy docket (Bankr. D. Del. No. 24-10070) are the place to follow the estate's assets and the claims pool.

What Stands Between the Lawsuit and a Distribution

Litigation can add to an estate's recovery, but only after several steps. The size of the claims is not a measure of what creditors may receive, and each step below can reduce, delay or end a recovery.

Survival. The claims must first survive this motion, in whole or in part. If they are dismissed with prejudice, they end, subject to appeal.

Liability. No court has found Jump or any of its entities liable. The estate would still have to prove its case, which in litigation of this size usually takes years.

Appeals. Even a judgment in the estate's favor would not be final until every avenue of appeal is exhausted, which can add years more.

Collection. A judgment is only as valuable as the assets of the party ordered to pay. Liability could be found against only some of the defendants, for example a single subsidiary with limited assets and creditors of its own. Several of the defendants are organized outside the United States (ECF No. 94), and enforcing a judgment abroad can require separate proceedings. A judgment can be partly or largely uncollectible.

Costs and fees. The costs of the litigation, and any share of proceeds owed to the legal professionals pursuing it, are paid before anything reaches creditors.

Distribution. Any net recovery would go to the Wind Down Trust and be distributed under the confirmed plan (Bankr. D. Del. No. 24-10070, D.I. 717), on the plan's timeline rather than the lawsuit's.

None of this predicts the outcome. The estate's claims could survive, settle or succeed. It means only that any recovery from the Jump case is uncertain in amount and timing, and is not yet part of the assets available for distribution.

Questions Creditors Ask

Will the Jump lawsuit increase my distribution?

Not necessarily, and not soon. The case could produce a recovery, a smaller settlement, or nothing. Any recovery would require a final judgment or a settlement, successful collection, and payment of costs and fees before a net amount reaches the Wind Down Trust.

Does a ruling on this motion change my Allowed CLC Amount?

No. The Allowed CLC Amount is set in the claims process, not in the Jump case.

Where can I read the motion?

The full 85-page filing is published here. It is also on the court docket through PACER (N.D. Ill., No. 1:25-cv-15414, ECF No. 94).

Sources

• Exclusive: Jump Defendants' Motion to Dismiss Amended Complaint, Snyder v. Jump Trading, LLC, No. 1:25-cv-15414 (N.D. Ill.), ECF No. 94, filed August 19, 2026. Full text obtained by TerraClaim and published with this article.

• Same docket: complaint, ECF No. 1 (Dec. 18, 2025); motions to dismiss, ECF Nos. 45 and 46 (Mar. 23, 2026); amended complaint, ECF No. 56 (May 1, 2026); stay order, ECF No. 77 (May 21, 2026).

• In re Terraform Labs Pte. Ltd., No. 24-10070 (Bankr. D. Del.), D.I. 717 (confirmed plan).

TerraClaim is a marketplace for Terraform Labs bankruptcy claims and earns fees when claims trade on it. We are not lawyers and this is not legal or financial advice. Case information is sourced from public court filings. Statements attributed to Jump are its arguments, not findings of the court. The outcome of the Jump litigation, and any recovery from it, is uncertain.

Track all case developments: TerraClaim Case Timeline