Terraform Labs’ bankruptcy administrator on Monday sued market making firm Jane Street for alleged insider trading during the 2022 Terra-Luna collapse, claiming the firm used a private group chat titled “Bryce’s Secret” to obtain non-public information and front-run the $40 billion implosion.
The 10-Minute Window
The lawsuit centers on May 7, 2022, when Terraform quietly withdrew 150 million TerraUSD from Curve’s 3pool without announcing it, the Wall Street Journal reported on Monday.
Less than 10 minutes later, a wallet allegedly linked to Jane Street withdrew 85 million TerraUSD from the same pool—at the time, the largest transaction ever recorded there.
The combined removal of 235 million UST severely destabilized liquidity. TerraUSD slipped below its $1 peg and panic spread.
Administrator Todd Snyder claims Jane Street front-ran the developing crisis, allowing it to liquidate hundreds of millions in high-risk positions before the broader market reacted.
The firm’s actions both shielded it from catastrophic losses and accelerated the collapse, according …Full story available on Benzinga.com
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