Jane Street Accused of Profiting From Terra Collapse Through Insider Information

Major trading firm Jane Street is facing federal lawsuit allegations of using insider information to profit from the collapse of the Terra crypto ecosystem in 2022.

The lawsuit claims that Jane Street used a secret Telegram group to dump $192 million in TerraUSD tokens, known as UST, before its value plummeted. The firm allegedly sold 193 million UST tokens, with an $85 million trade executed on the decentralized exchange Curve Finance just nine minutes after Terraform Labs withdrew liquidity.

The private Telegram channel, nicknamed 'Bryce's Secret,' is alleged to have been the conduit for insider information. The chat is named after Bryce Pratt, a former Terraform intern who later joined Jane Street.