Terraform Labs Sues Jane Street Over Alleged Insider Trading

Terraform Labs has filed a lawsuit against Jane Street, an investment trading firm, alleging that they used non-public data to front-run TerraUSD trades.

The lawsuit, which was filed by Todd Snyder, the liquidation administrator for Terraform Labs, claims that Jane Street had access to confidential information through a former employee of Terraform Labs. This individual allegedly shared information with Jane Street traders, allowing them to profit from their knowledge of upcoming market movements.

The case is the latest development in the fallout from the $40 billion collapse of Terraform Labs. The company's algorithmic stablecoin, TerraUSD, lost its peg to the US dollar in May 2022, causing a ripple effect throughout the cryptocurrency market.