Terraform Labs Sues Jane Street for Alleged Insider Trading

Terraform Labs' bankruptcy administrator has filed a lawsuit against Jane Street, alleging the company used insider information to profit from and accelerate the collapse of Terra-Luna.

The complaint claims that traders obtained material nonpublic information from insiders and used it to trade ahead of the market, speeding up the company's downfall. The lawsuit highlights a May 7, 2022 incident in which the crypto platform moved 150 million TerraUSD out of the Curve3pool without notifying the market.

Jane Street has denied the allegations, calling the lawsuit 'a desperate attempt to extract money' and insisting that Terraform's losses were the result of a multibillion-dollar fraud by its management.