Jane Street Accused of Insider Trading in Terraform Collapse

A lawsuit has been filed against trading firm Jane Street by a court-appointed administrator overseeing the bankruptcy of Terraform Labs. The suit alleges that Jane Street engaged in insider trading, using confidential information to inform trades that worsened the collapse of the Terra ecosystem.

According to the complaint, Jane Street used connections with Terraform insiders to obtain material non-public information about the company. This information was then used to sell tokens tied to the Terra blockchain, which contributed to its decline.

The lawsuit claims that Jane Street sold hundreds of millions of dollars in potential exposure just hours before the Terraform ecosystem collapsed. The administrator is seeking damages and disgorgement from Jane Street as a result of its alleged actions.