A new lawsuit has shed light on the 2022 Terra Luna crash, blaming Jane Street for its role in the debacle. According to the complaint, the market maker allegedly used insider information to profit from the collapse of the Terra ecosystem.
The allegations against Jane Street include misuse of confidential information and manipulation of market prices. The lawsuit claims that the company's executives met with Terra's co-founders in 2018 and had access to sensitive information.
The alleged misuse of insider knowledge is said to have led to a $60 billion liquidity drain in just days, causing widespread panic in the crypto market.