Terraform Accuses Jane Street of Insider Trading
Terraform's administrator sued Jane Street, alleging insider trading that exacerbated the Terra ecosystem's collapse.Summary
Todd Snyder, the court-appointed administrator for Terraform Labs' bankruptcy, has filed a lawsuit in a Manhattan federal court against trading firm Jane Street, its co-founder Robert Granieri, and employees Bryce Pratt and Michael Huang. The suit accuses them of misappropriating confidential information and manipulating market prices, specifically alleging that Jane Street used connections with Terraform insiders to gain material non-public information, which they then used to sell off tokens tied to the Terra blockchain, worsening its collapse.
Jane Street denied the allegations, calling the suit "baseless" and an "opportunistic attempt to extract money," asserting that Terra's losses resulted from fraud perpetrated by Terraform's management. The lawsuit claims Jane Street was able to sell off "hundreds of millions of dollars in potential exposure at precisely the right time, mere hours before the Terraform ecosystem collapsed," allegedly facilitated by former Terraform intern Bryce Pratt reestablishing communication channels.
The complaint details that on May 7, 2022, shortly after Terraform withdrew 150 million TerraUSD tokens from a liquidity pool without public announcement, Jane Street sold 85 million TerraUSD into the same pool—its largest single swap—which allegedly initiated the fire sale leading to the ecosystem's failure. Snyder is seeking damages, disgorgement, and interest from Jane Street.
(Source：Cointelegraph)