Jane Street faces claims of insider trading that sped up Terraform's 2022 collapse
Jane Street is accused of insider trading that exacerbated the 2022 collapse of Terraform Labs, resulting in billions of dollars in investor losses.Summary
High-frequency trading firm Jane Street is facing allegations of insider trading related to the 2022 collapse of Terraform Labs and its associated cryptocurrencies, Luna and TerraUSD (UST). The administrator winding down Terraform Labs, Todd Snyder, has filed a lawsuit against Jane Street, alleging that the firm used non-public information to profit from Terraform’s downfall. Specifically, the lawsuit claims Jane Street withdrew a significant amount of TerraUSD shortly before Terraform publicly announced a large withdrawal, triggering market panic. Jane Street denies the allegations, calling the lawsuit a “desperate” attempt to extract money and asserting that the losses were due to fraud perpetrated by Terraform Labs’ management. The collapse of TerraUSD and Luna in May 2022 resulted in an estimated $40 billion in market capitalization loss within a week, impacting the broader crypto market and leading to the bankruptcy of Terraform Labs and the imprisonment of its founder, Do Kwon.
(Source：CoinDesk)