Jane Street Accused of Insider Trading Linked to Terraform Labs Collapse

A lawsuit has been filed against Jane Street, a trading firm, by Todd Snyder, the court-appointed administrator of Terraform Labs. The complaint alleges that Jane Street used confidential information to sell tokens tied to the Terra blockchain before the market crash in May 2022.

The lawsuit cites a key event on May 7, 2022, when Terraform withdrew 150 million TerraUSD from the Curve3pool liquidity pool without a public announcement. Within ten minutes, a wallet allegedly linked to Jane Street withdrew 85 million TerraUSD from the same pool.

The administrator alleges that Jane Street used sensitive information throughout the market turmoil, allowing the firm to limit losses while other investors faced steep declines. The case requests a jury trial in federal court and seeks damages, disgorgement of profits, and interest.