Jane Street sued for alleged front-running trades that accelerated Terraform Labs meltdown
Terraform Labs' bankruptcy administrator sued Jane Street for alleged front-running trades using insider information that worsened the stablecoin's collapse.Summary
Todd Snyder, the bankruptcy plan administrator for Terraform Labs, has filed a lawsuit in Manhattan federal court against Jane Street Group, alleging the firm engaged in front-running trades. The complaint claims Jane Street used non-public information obtained from Terraform insiders to profit, thereby accelerating the rapid collapse of the TerraUSD (UST) stablecoin and LUNA in May 2022, which wiped out about $40 billion in value. The lawsuit also names Jane Street co-founder Robert Granieri and employees Bryce Pratt and Michael Huang as defendants. This action follows a separate $4 billion claim Snyder filed against Jump Trading for alleged market manipulation related to UST. Federal prosecutors had previously examined Telegram chats involving staff from Jump Trading, Jane Street, and Alameda Research concerning a proposed TerraUSD rescue to determine if they constituted market manipulation leading up to the collapse.
(Source：Crypto Briefing)