used <\/a>a private Telegram channel to exit $192 million in TerraUSD before its May 2022 collapse. The suit claims the firm made approximately $134 million betting against the token as Terra\u2019s ecosystem unraveled.<\/p>\nThe case was filed by the administrator winding down Terraform Labs and also names Jane Street co-founder Robert Granieri and trader Michael Huang. The complaint alleges a former Terraform intern who later joined Jane Street relayed non-public information through the private channel, enabling the firm to sell ahead of the depeg.<\/p>\n
The Telegram backchannel at the centre of the insider trading complaint<\/h2>\n
On May 7, 2022, Jane Street allegedly sold 85 million UST minutes after Terraform withdrew 150 million from a key Curve pool. Crypto.news has reported on the broader lawsuit, filed in February 2026 by court-appointed administrator Todd Snyder.<\/p>\n
<\/p>\n
\u201cThis suit is a transparent attempt to extract money when it is well-established that the losses suffered by Terra and Luna holders were the result of a multi-billion dollar fraud perpetrated by the management of Terraform Labs,\u201d a spokesperson said.<\/p>\n
Jane Street asked a Manhattan court in April 2026 to dismiss the case with prejudice, arguing its trading was based on public information. The motion also cited the Wagoner rule, which limits a bankruptcy estate\u2019s ability to sue third parties for losses tied to its own wrongdoing. The court has not yet ruled.<\/p>\n
Why the case matters for crypto market regulation<\/h2>\n
The lawsuit draws on a 2023 ruling that UST and Luna qualified as securities. That precedent strengthens the legal footing for the securities fraud claims against Jane Street.<\/p>\n
Terraform\u2019s administrator also separately sued Jane Street in February 2026 over the initial front-running allegations tied to the Curve pool withdrawal. <\/p>\n
Do Kwon, Terraform\u2019s co-founder, has pleaded guilty to conspiracy and wire fraud and is serving a 15-year prison sentence. Administrator Todd Snyder previously stated that Jane Street\u2019s trades hastened Terraform\u2019s collapse by draining liquidity and accelerating market panic.<\/p>\n
<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"
Jane Street has rejected new insider trading claims centred on a private Telegram channel during the 2022 Terra collapse. Summary A Manhattan complaint accuses Jane Street of using a Telegram…<\/p>\n","protected":false},"author":1,"featured_media":2906,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-29233","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptocurrency"],"_links":{"self":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/29233","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/comments?post=29233"}],"version-history":[{"count":1,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/29233\/revisions"}],"predecessor-version":[{"id":29234,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/29233\/revisions\/29234"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/media\/2906"}],"wp:attachment":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/media?parent=29233"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/categories?post=29233"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/tags?post=29233"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}