Jump Trading Sues Liam Heeger for Non-Compete Breach | Coinspeaker
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Jump Trading Sues Liam Heeger for Non-Compete Breach

Market maker Jump Trading has filed a lawsuit against Liam Heeger, its former Firedancer engineer.

Godfrey Benjamin By Godfrey Benjamin Julia Sakovich Edited by Julia Sakovich Updated 3 mins read
Jump Trading Sues Liam Heeger for Non-Compete Breach
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Key Notes

  • Jump Trading has sued Liam Heeger, its Firedancer engineer.
  • The market maker said Heeger violated his non-compete when he created Unto Labs.
  • Liam Heeger has denied any violation as his project has no overlap with Jump.

Jump Trading, a proprietary trading firm established in 1999, has sued Liam Heeger, the founder of Unto Labs. As reported by The Block, the lawsuit claims that Heeger broke non-compete rules and secretly raised money for his new blockchain project. The suit claims he did this while working at Jump Trading and co-leading Firedancer, the company’s Project.

Full Details on Jump Trading Lawsuit

According to the legal filing, Heeger participated in the Breakpoint conference in Singapore. Jump claims this event was used to secretly obtain funding for Liam’s startup, Unto Labs, even though he was still committed. The company says that Heeger’s actions broke the non-compete agreement, which prevents him from working on activities that compete with its business for a certain time after leaving the firm.

Furthermore, Jump’s legal complaint states that Heeger raised $3 million in funding for Unto Labs just a month after leaving the company. Jump claims that Unto Labs’ quick launch suggests Heeger had planned this move before he resigned.

Likewise, the filing alleged that Heeger told a former colleague about his investors in his new business, which include Framework Ventures and its sister company, Framework Labs. Jump Trading claimed this conversation occurred a month after Heeger left the company. Meanwhile, Heeger said he planned to follow his non-compete agreement when he signed it.

However, Liam Heeger traveled to California when he no longer had an obligation to comply with the non-compete rules. This move has raised questions regarding his compliance with the signed agreement when he left Jump Trading.

In response to the lawsuit, Heeger and Unto Labs’ spokesperson strongly denied the lawsuit’s claims. Heeger says the accusations are “false and misleading”.

He emphasizes that Unto Labs is working on “something entirely new” and is not directly competing with Jump’s business. Heeger also argues that this new venture differs from Jump’s operations and focuses on areas not covered by the non-competition agreement.

Regulatory Challenges Impact Jump Trading

Beyond the legal brawl with Heeger, Jump has a strained history in its relationships with the brokerage world.

Once formidable partners, Robinhood and Jump Trading ended their years-long relationship in 2023. Jump Trading was an early adopter of cryptocurrencies and notably served as the market maker for Robinhood’s commission-free crypto trading.

Despite Robinhood having its crypto trading platform, it could not independently execute customers’ buying and selling orders. This led to a reliance on third-party firms, forming the foundation of its partnership with Jump Trading.

However, the termination of this partnership occurred without any announcement, and despite efforts from news outlets, attempts to gather information yielded limited results. Meanwhile, evidence that supported the partnership’s end was found in changes in their collaborative dynamics.

Meanwhile, reports indicate that Jump Trading is scaling back its operations in the United States due to regulatory uncertainties. Regulatory challenges have complicated its business operations and impeded the maintenance of operational standards. This could also contribute to the partnership’s termination with Robinhood.

Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.

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Godfrey Benjamin

Benjamin Godfrey is a blockchain enthusiast and journalist who relishes writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain media and sites.

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